WEST MIFFLIN, Pennsylvania: US President Donald Trump on Friday (May 30) said he planned to increase tariffs on imported steel and aluminum to 50% from 25%, ratcheting up pressure on global steel producers and deepening his trade war.
“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50%, the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” he said at a rally in Pennsylvania.
Trump announced the higher tariffs just outside Pittsburgh, where he was talking up an agreement between Nippon Steel and US Steel. Trump said the US$14.9 billion deal, like the tariff increase, will help keep jobs for steel workers in the US.
He later posted on social media that the increased tariff would also apply to aluminium products and that it would take effect on Wednesday.
Shares of steelmaker Cleveland-Cliffs Inc surged 26 per cent after the market close as investors bet the new levies will help its profits.
The announcement drew harsh reactions from U.S. trading partners around the world.
Canada’s Chamber of Commerce quickly denounced the tariff hike as “antithetical to North American economic security”.
Trump hails Nippon Steel as ‘great partner’ for US Steel in rally
Canada’s United Steelworkers union called the move a direct attack on Canadian industries and workers.
The European Commission said on Saturday that Europe is prepared to retaliate.
“This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” a European Commission spokesperson said.
Australia’s centre-left government also condemned the tariff increase, with Trade Minister Don Farrell calling it “unjustified and not the act of a friend.”
Trump spoke at US Steel’s Mon Valley Works, a steel plant that symbolises both the one-time strength and the decline of US manufacturing power as the Rust Belt’s steel plants and factories lost business to international rivals. Closely contested Pennsylvania is also a major prize in presidential elections.
The US is the world’s largest steel importer, excluding the European Union, with a total of 26.2 million tons of imported steel in 2024, according to the Department of Commerce. As a result, the new tariffs will likely increase steel prices across the board, hitting industry and consumers alike.
Steel and aluminium tariffs were among the earliest put into effect by Trump when he returned to office in January. The tariffs of 25 per cent on most steel and aluminium imported to the US went into effect in March, and he had briefly threatened a 50 per cent levy on Canadian steel but ultimately backed off.
The 2024 import value for the 289 product categories came to US$147.3 billion, with nearly two-thirds aluminium and one-third steel, according to Census Bureau data retrieved through the US International Trade Commission’s Data Web system.
By contrast, Trump’s first two rounds of punitive tariffs on Chinese industrial goods in 2018 during his first term totalled US$50 billion in annual import value.
