Trump Doubles US Steel and Aluminium Tariffs to 50%, Spares UK for Now

U.S. President Donald Trump has signed an executive order doubling existing import tariffs on steel and aluminium products from 25 percent to 50 percent. The measure, which takes effect on June 5, intensifies a series of ongoing trade disputes and places new pressure on global supply chains and diplomatic relations.

The revised tariffs, enacted under national security provisions in Section 232 of the Trade Expansion Act, are being introduced to further support U.S. metal producers. According to the administration, the increased duties are intended to counter what it views as unfair competition and to strengthen domestic industry resilience. During a speech at a U.S. Steel facility, Trump stated that the elevated tariff rate would make it more difficult for foreign producers to undercut American manufacturers.

This marks the second major escalation in steel and aluminium duties since March, when the administration reinstated a 25 percent duty on steel and 10 percent on aluminium. According to White House economic officials, further data analysis suggested the initial measures were insufficient in safeguarding the U.S. metals sector, prompting this latest move.

UK Gains Temporary Exemption Amid Broader Disruption

The United Kingdom has received a temporary exemption from the new tariff rate, owing to a preliminary trade agreement known as the Economic Prosperity Deal (EPD). The agreement, signed on May 8 but still pending parliamentary ratification, allows UK metal exports to continue facing the previous 25 percent tariff rather than the increased 50 percent rate.

President Trump noted in the executive order that the UK merited different treatment under the terms of the EPD but warned that the exemption could be rescinded after July 9 if the agreement is not fully implemented. British Trade Secretary Jonathan Reynolds, who recently met with U.S. Trade Representative Jamieson Greer in Paris, welcomed the provisional relief and reiterated the UK’s commitment to finalizing the deal.

Industry leaders in the UK, however, remain cautious. Gareth Stace, Director General of UK Steel, described the pause as welcome but temporary, warning that most existing export contracts may be canceled due to the uncertainty. The increase in tariffs, he added, effectively blocks British steelmakers from competing in the U.S. market under current conditions.

Global Allies React as U.S. Sets New Trade Conditions

The decision to double tariffs coincides with a broader U.S. trade strategy that sets June 5 as a deadline for allied nations to submit updated trade proposals. These submissions are expected to include specific commitments on tariff reductions, non-tariff barrier removal, and increased U.S. imports. The White House has dubbed the broader trade shift as part of its “Liberation Day” strategy, with further duties set to activate by July 8 should no new agreements be reached.

According to sources familiar with the talks, letters were sent by the Office of the U.S. Trade Representative to several governments outlining the expectations. A White House spokesperson described these letters as a routine reminder but noted that trade partners are expected to respond promptly.

While the UK has reached an agreement in principle, other key trade partners such as Canada and Mexico remain exposed to the full tariff increase. Mexican officials have voiced strong objections, highlighting that Mexico is a net importer of U.S. steel and that the tariffs undermine balanced trade. Canadian representatives have also signaled intent to respond, as both countries account for major shares of steel and aluminium shipments to the U.S.

Economic Repercussions Widen Across Industries

The global metals sector is already experiencing fallout from the policy shift. U.S. steel imports declined by 17 percent in April, according to the American Iron and Steel Institute. Government data show that Canada and Mexico—ranked as the largest and third-largest steel exporters to the U.S.—will face the most significant disruptions.

Canada is particularly affected in the aluminium sector, as it supplies nearly half of all aluminium imported into the U.S., far outpacing other nations. Market analysts report that aluminium premiums in the U.S. have more than doubled since the beginning of the year, driven by supply uncertainty and higher input costs.

American businesses dependent on imported steel and aluminium have begun to feel the impact. Supply chain managers report unexpectedly high tariff bills and growing price instability. Chad Bartusek, a supply chain director at a steel tool manufacturer in Illinois, noted that the latest tariff hike forced his company to raise prices by up to 14 percent and reduce employee hours to offset costs. His firm alone was hit with a tariff invoice of $145,000—twice what had been anticipated.

Economic analysts have raised concerns about the broader implications. Erica York, a tax policy expert, cited earlier research showing that the 2018–2020 round of Trump-era tariffs created a limited number of manufacturing jobs while triggering job losses in sectors reliant on imported metals. She warned that similar effects could emerge from the current escalation.

Trade Uncertainty Persists Ahead of Next Deadline

As the global deadline for revised trade deals approaches, many governments remain in limbo. The UK’s provisional agreement offers a short-term buffer, but most U.S. trading partners face mounting economic uncertainty. For industries reliant on cross-border supply chains, the coming weeks may bring further disruption or potentially force new pricing strategies and production shifts.

Whether these protectionist measures will succeed in revitalizing domestic metal production or ultimately isolate the U.S. further from global trade frameworks remains unclear. For now, the world watches as international negotiators, economists, and businesses prepare for a turbulent period of tariffs and trade diplomacy.