Trump Doubles Tariffs on Steel and Aluminum to 50 amid Growing Trade Tensions

Wednesday 04 June 2025 - 10:33

By: Zahouani Ilham

Trump Doubles Tariffs on Steel and Aluminum to 50 amid Growing Trade Tensions

U.S. President Donald Trump has significantly increased tariffs on imported steel and aluminum, raising them to 50%. This move, announced in a presidential order effective from 12:01 a.m. local time on Tuesday, is presented as a measure to protect national security.

According to the White House, although previous tariffs had stabilized domestic prices, they failed to ensure adequate production capacity for long-term industrial sustainability and defense needs. Steel and aluminum were initially targeted by Trump’s trade policies, with tariffs of 25% imposed in March to stimulate domestic investment.

These sector-specific tariffs—soon to include pharmaceuticals and semiconductors—remain intact despite recent legal challenges that overturned broader trade duties. The timing of the announcement coincides with critical trade talks in Paris, where U.S. Trade Representative Jamieson Greer is meeting with EU Commissioner Maros Sefcovic during an OECD summit.

Trump has warned the European Union of further 50% tariffs, accusing it of negotiating in bad faith. As the temporary 90-day trade reprieve nears its July 9 expiration, tensions are intensifying. White House spokesperson Karoline Leavitt confirmed that reminders were sent to all trading partners about the approaching deadline.

European leaders have already expressed readiness to respond if the new tariffs target them specifically. Greer is also scheduled to meet with trade officials from Vietnam and Malaysia. Meanwhile, G7 trade representatives are gathering for high-level talks just ahead of a major summit in Canada.

German Economy Minister Katherina Reiche emphasized the urgency of reaching negotiated solutions, while French Foreign Trade Minister Michael Faulkender urged calm and pointed out that such tariffs ultimately harm the U.S. economy.

The OECD now forecasts a sharp slowdown in U.S. growth to 1.6% this year—down from 2.4% when Trump took office—largely due to his aggressive trade stance. Global economic uncertainty remains, as Trump has accused China of violating a recent de-escalation agreement and hinted at restarting the trade war, citing delays in rare metal exports.

Despite this, Deputy Treasury Secretary Michael Faulkender stated on Monday that talks with China are making progress. The White House has also indicated that Trump hopes to speak with Chinese President Xi Jinping sometime this week.

In reaction to the tariff hike, Canada—America’s top supplier of steel and aluminum—called the measures “illegal and unjustified.” Mexico’s Economy Minister Marcelo Ebrard said his country will seek exemption, criticizing the move as “absurd,” noting that 80% of Mexico’s exports go to the U.S.