U.S. President Donald Trump signed an executive order on Tuesday to double tariffs on imported steel and aluminum from 25% to 50%.
The new measure, set to take effect on Wednesday, marks the second tariff increase on these metals since March. Steel and aluminum are critical inputs for a wide range of products — from automobiles to canned goods — and Trump argues the move is necessary to safeguard the future of the U.S. steel industry.
However, critics warn that such steep tariffs could disrupt global steel producers, trigger retaliation from Washington’s trade partners, and significantly raise costs for U.S. industries that rely on these materials.
Hours before Trump signed the tariff hike, many affected businesses expressed disbelief that the plan was moving forward, hoping it might be temporary or simply a negotiating tactic.
The United Kingdom secured an exemption, maintaining its tariffs on steel and aluminum at 25%, in a deal that Trump described as a reflection of ongoing trade talks with London.
“The question with Trump is always: is it a tactic or a long-term plan?” said Rick Huether, CEO of Independent Can Co., a Maryland-based company that imports steel from Europe to manufacture decorative tins for cookies, popcorn, and other goods.
He said his company had suspended investments, fearing sudden policy shifts and rising costs would drive customers toward alternatives like plastic or cardboard packaging.
“There’s a lot of chaos,” he added.
The World’s Largest Steel Importer
The United States is the world’s largest importer of steel after the European Union, sourcing most of it from Canada, Brazil, Mexico, and South Korea, according to U.S. government data.
During his first term, Trump imposed 25% tariffs on steel and 10% on aluminum, citing a law that allows the president to protect industries deemed critical to national security.
However, many imports were later exempted following trade deals and waivers granted to certain companies. Trump ended these exemptions in March, expressing dissatisfaction with how the protections had been weakened.
Speaking at a steel factory rally last Friday, Trump said he wanted to raise tariffs so high that U.S. companies would be left with no choice but to buy domestically.
“No one’s going to get around that,” he said of the 50% rate. “That means no one can steal your industry. At 25%, they can jump the barrier. At 50%, they can’t jump anymore.”
As of May, both imports and U.S. crude steel production had changed little since last year — before the tariff hikes — according to the American Iron and Steel Institute. However, steel imports dropped by 17% in April compared to March, and foreign suppliers say they expect an even steeper decline following Trump’s latest announcement.
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