On Tuesday, June 3, President Donald Trump signed an executive order doubling tariffs on steel and aluminum imported into the United States to 50 percent, which will take effect on June 4, 2025, Newsweek reported.
According to Trump, the goal of these tariffs is to protect US national security and to “more effectively deal with” foreign countries that export cheap steel to the US, which hurts domestic industries.
The order builds on the 25% and 10% tariffs on steel and aluminum, respectively, signed by Trump on March 8, 2018, imposed under Section 232 of the Trade Expansion Act during the previous administration, where officials cited the need to strengthen American steel and aluminum production capacity for economic and defense reasons.
According to Newsweek, business leaders had previously said the plan would increase spending for industries such as construction, automotive and transportation, machinery and equipment manufacturing, energy and utilities, as well as machinery and consumer goods manufacturing.
The President also said that while previous tariffs (imposed by the Trump administration in 2018) have led to some improvement in United States steel prices, the industry is still struggling and more needs to be done.
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The White House said the executive order, effective at 12:01 a.m. on Wednesday (June 4), will increase tariffs on steel, aluminum, and their derivatives from 25 percent to 50 percent.
Mild relief for the United Kingdom
After trade deal talks between the United Kingdom and the United States began on May 8, Trump said the UK would not see as much of a tariff increase, but the country would still see a 25% tariff, rather than the 0% tariff that Prime Minister Keir Starmer had hoped for.
Last week, the president said the acquisition of Nippon US Steel, Japan’s largest steelmaker, would bring $14 billion in investment to the industry, which has largely suffered as jobs and production have been moved overseas in recent decades.
According to the president, there are plans to establish new steel plants in Indiana, Alabama, Arkansas, and Minnesota.
Newsweek reported that Trump‘s announcement said that Commerce Secretary Howard Lutnick would continue to monitor the situation and manage it accordingly.
