Trump Increases Tariffs on Steel and Aluminum to 50%
The U.S. President justifies the tariff hikes amid ongoing trade tensions.
Washington, D.C. - President Donald Trump has raised tariffs on steel and aluminum imports from 25% to 50%, a decision that could escalate the ongoing trade war.
Since taking office in January, Trump has imposed a series of tariffs that have strained relationships with trading partners and led to a wave of negotiations.
The tariffs on steel and aluminum were among the first measures implemented, originally set at 25% starting March 12, 2024, to encourage domestic investment in these sectors.
These sector-specific tariffs, which also affect the automotive industry and will soon extend to pharmaceuticals and semiconductors, are among the few tariffs not suspended by a recent court ruling that blocked most tariffs.
In an executive order that took effect at 12:01 a.m. local time, Trump justified the increase by stating that the initial tariffs, while supportive of domestic prices, had not allowed steel and aluminum industries to maintain a necessary production capacity for long-term viability.
The increased tariffs, he argued, would provide additional support to these industries and mitigate the national security threat posed by imports of steel and aluminum and their derivatives.
In 2024, approximately half of the steel and aluminum consumed in the United States was imported.
Major exporters to the U.S. include Canada as the largest supplier of steel, followed by Brazil and Mexico, with products intended for various industries, including automotive and construction.
Argentina ranks sixth in aluminum exports to the U.S.
Costa Rica also exports both materials to the United States, with total steel exports amounting to $241 million in 2024, of which $3.66 million were shipped to the U.S. Aluminum exports reached $93.2 million, with $13 million directed to the U.S. according to data from the country's trade promotion agency.
The Mexican government announced plans to seek an exemption from the new tariffs, which Secretary of Economy Marcelo Ebrard described as "unjust, unsustainable, and inconvenient."
Meanwhile, the United Kingdom remains exempt, maintaining the previous 25% tariff as discussions continue toward a trade agreement announced last month.
The British government expressed satisfaction and commitment to working with the U.S. to finalize the agreement.
The announcement coincided with meetings in Paris between U.S. Trade Representative Jamieson Greer and European Trade Commissioner Maros Sefcovic, organized by the Organization for Economic Cooperation and Development (OECD), which includes 38 countries, primarily developed nations along with emerging economies like Chile, Colombia, and Mexico.
Trump has criticized the European Union for purportedly failing to negotiate in good faith, threatening an increase in tariffs to 50%.
On April 2, designated as "Liberation Day," he imposed tariffs of 10% on nearly all U.S. trade partners and higher rates on numerous economies, including the EU and China.
Although the higher rates were initially suspended for 90 days, this moratorium expired on July 9, 2024.
The White House confirmed that a letter was sent to trading partners reminding them of the approaching deadline, while Europe indicated intentions to respond to any increased tariffs.
Additionally, a meeting of G7 trade representatives is scheduled, during which the group's leaders will convene from June 15 to 17, 2024, in Canada.
The OECD has revised its global growth forecast downward due to Trump's tariffs, predicting an increase of 2.9% instead of the 3.1% anticipated in March.
This uncertainty continues to weigh on the global economy, especially amid accusations from Trump that China has not honored the terms of a de-escalation agreement signed in Geneva in May, with threats to intensify the trade conflict.
Since taking office in January, Trump has imposed a series of tariffs that have strained relationships with trading partners and led to a wave of negotiations.
The tariffs on steel and aluminum were among the first measures implemented, originally set at 25% starting March 12, 2024, to encourage domestic investment in these sectors.
These sector-specific tariffs, which also affect the automotive industry and will soon extend to pharmaceuticals and semiconductors, are among the few tariffs not suspended by a recent court ruling that blocked most tariffs.
In an executive order that took effect at 12:01 a.m. local time, Trump justified the increase by stating that the initial tariffs, while supportive of domestic prices, had not allowed steel and aluminum industries to maintain a necessary production capacity for long-term viability.
The increased tariffs, he argued, would provide additional support to these industries and mitigate the national security threat posed by imports of steel and aluminum and their derivatives.
In 2024, approximately half of the steel and aluminum consumed in the United States was imported.
Major exporters to the U.S. include Canada as the largest supplier of steel, followed by Brazil and Mexico, with products intended for various industries, including automotive and construction.
Argentina ranks sixth in aluminum exports to the U.S.
Costa Rica also exports both materials to the United States, with total steel exports amounting to $241 million in 2024, of which $3.66 million were shipped to the U.S. Aluminum exports reached $93.2 million, with $13 million directed to the U.S. according to data from the country's trade promotion agency.
The Mexican government announced plans to seek an exemption from the new tariffs, which Secretary of Economy Marcelo Ebrard described as "unjust, unsustainable, and inconvenient."
Meanwhile, the United Kingdom remains exempt, maintaining the previous 25% tariff as discussions continue toward a trade agreement announced last month.
The British government expressed satisfaction and commitment to working with the U.S. to finalize the agreement.
The announcement coincided with meetings in Paris between U.S. Trade Representative Jamieson Greer and European Trade Commissioner Maros Sefcovic, organized by the Organization for Economic Cooperation and Development (OECD), which includes 38 countries, primarily developed nations along with emerging economies like Chile, Colombia, and Mexico.
Trump has criticized the European Union for purportedly failing to negotiate in good faith, threatening an increase in tariffs to 50%.
On April 2, designated as "Liberation Day," he imposed tariffs of 10% on nearly all U.S. trade partners and higher rates on numerous economies, including the EU and China.
Although the higher rates were initially suspended for 90 days, this moratorium expired on July 9, 2024.
The White House confirmed that a letter was sent to trading partners reminding them of the approaching deadline, while Europe indicated intentions to respond to any increased tariffs.
Additionally, a meeting of G7 trade representatives is scheduled, during which the group's leaders will convene from June 15 to 17, 2024, in Canada.
The OECD has revised its global growth forecast downward due to Trump's tariffs, predicting an increase of 2.9% instead of the 3.1% anticipated in March.
This uncertainty continues to weigh on the global economy, especially amid accusations from Trump that China has not honored the terms of a de-escalation agreement signed in Geneva in May, with threats to intensify the trade conflict.