Trump’s 50% Tariff Hike: Boost or Blow to U.S. Steel and Aluminum?

President Donald Trump took a bold step to protect American industry by signing a proclamation that doubled tariffs on steel and aluminum imports, from 25% to 50%. The new rate took effect on June 4, 2025.

While Trump aims to curb unfair trade practices, the key question is: Will higher tariffs truly strengthen U.S. manufacturing or simply raise costs for consumers and businesses?

Why Trump Raised Tariffs Again?

Trump made his message clear: the U.S. will no longer accept unjust competition that hurts national security and local manufacturing. The EO highlights that he used Section 232 of the Trade Expansion Act of 1962, a law that lets the president limit imports if they threaten national security.

His team says the U.S. market is being flooded with cheap steel and aluminum from other countries, often helped by foreign subsidies and unfair pricing. This, they argue, puts American metal industries at risk.

This isn’t Trump’s first move. Back in 2018, during his first term, he put a 25% tariff on steel and a 10% tariff on aluminum to protect U.S. jobs and factories.

But now, with U.S. production slowing again—steel output down to 75.3% in 2023 and aluminum at just 55%—he says it’s time for tougher steps.

Trump said at a rally at a U.S. Steel plant

“At 25%, they can get over the fence. At 50%, they can no longer get over the fence.”

Tariffs Take the Test

Trump’s team strongly believes tariffs are getting results—and they’ve got studies to back it up. A 2024 study on Trump’s first-term tariffs said they boosted the economy and brought key industries back to the U.S.

Some key observations highlighted in the EO were:

• In 2023, the U.S. International Trade Commission found that the tariffs cut imports from China and led to more U.S. production, with little effect on prices.
• The Economic Policy Institute said Trump’s first tariffs didn’t cause inflation and only briefly affected prices.
• The Atlantic Council noted that tariffs push U.S. consumers to buy American-made goods.
• Former Treasury Secretary Janet Yellen said in 2024 that higher tariffs won’t lead to noticeable price hikes.

Furthermore, another study from last year found a global 10% tariff could grow the U.S. economy by $728 billion, add 2.8 million jobs, and boost household incomes by 5.7%.

Eased Tariffs for UK, Tough Penalties for Violators

While most imports will face the 50% tariff, the United Kingdom gets a temporary carve-out. Steel and aluminum imports from the UK will remain at 25% until at least July 9, 2025, pending developments in the U.S.-UK Economic Prosperity Deal.

Also, the tariff applies only to the steel and aluminum content of imported products. Other materials will be taxed under standard rates.

In addition, the administration is introducing stricter enforcement. In this regard, importers will need to report steel and aluminum content more transparently now or risk fines or losing their import rights altogether.

• READ MORE: Trump’s Tariffs on Canada, China, and Mexico: A Risky Bet for U.S. Critical Minerals and Aluminum?

The Industry Reaction: Praise and Concern

Some U.S. manufacturers and industry groups welcomed the higher tariffs, viewing them as a necessary shield against unfair global competition.

The American Primary Aluminum Association praised the move, saying stronger enforcement would help revive the domestic sector.

• Domestic production of aluminum is just one-third of its needs. According to Statista, the United States imported about 4.8 million metric tons of aluminum for consumption in 2024.

Imports of aluminum for consumption in the United States from 2010 to 2024 (in 1,000 metric tons)

The steel industry, which saw a wave of investment after Trump’s first tariffs, also backed the decision. Over $10 billion was invested in new U.S. mills between 2016 and 2020, and the industry credited Trump’s policy for that resurgence.

But not everyone’s cheering.

A BBC report says Canadian producers, who supply a significant share of U.S. metal imports, warned the tariffs would “devastate” their industries. Meanwhile, U.S. businesses that rely on imported metals expressed frustration.

Rick Huether, CEO of Independent Can Co., said the chaos from sudden tariff hikes is already forcing firms to raise prices and delay investments.

He also added, “There’s a lot of chaos. I fear my customers will switch to plastic or paper packaging because of the uncertainty.”

Impact on Consumers and U.S. Supply Chains

Moving on, AP News has analyzed that the ripple effects of these tariffs go far beyond the metal industry. The report highlighted the potential impact of Trump’s tariffs on consumers and the U.S. supply chains in the following way:

• Autos: Imported steel and aluminum could raise car and repair costs.
• Electronics: Metal parts may push up gadget prices.
• Canned goods: Aluminum cans could make groceries more expensive.
• Construction: Higher metal costs may raise housing and project prices.
• Logistics: Pricier trucks may increase shipping and shelf prices.

So, while the goal is to boost American production, the short-term cost could land on everyday consumers.

“So, Are Those Hiked Trump Tariffs Strategic or Tactical?”

Some still question Trump’s long-term strategy. Is this a serious industrial policy—or just a negotiating ploy?

Many firms hoped the move would be temporary. But Trump’s speech at the steel plant made one thing clear: he intends this to be permanent, unless countries agree to stricter trade terms.

• The U.S. is the second-largest importer of steel globally, after the EU. Its main suppliers include Canada, Brazil, Mexico, and South Korea. With the new 50% tariff, trade dynamics are likely to shift dramatically.

The Biden administration has not yet responded. But reactions from global partners will follow soon. Retaliatory tariffs are not off the table, and other nations may look to strike back.

For now, Trump’s second round of tariffs shows a strong push to bring manufacturing back to the U.S.—even if it leads to higher costs and trade disputes.

Raising tariffs to 50% is a bold move to support American industry. While metal producers in the U.S. support it, the decision could disrupt global trade and raise prices for American buyers. Whether this move brings long-term benefits or new problems will depend on how it’s enforced, how other countries respond, and what other policies are put in place.

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