Yesterday, June 3, US President Donald Trump signed an order to increase tariffs from 25 percent to 50 percent on steel and aluminum imports into the US, according to a statement published by White House. The higher tariff will be effective as of June 4, 2025.
Trump stated that the measures are intended to secure the future of the US steel industry, ending unfair trade practices and the global dumping of steel and aluminum.
In addition, tariffs on steel and aluminum imports from the UK will remain at 25 percent, with possible changes or quotas starting from July 9, 2025, depending on the status of the US-UK Economic Prosperity Deal signed on May 8.
Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), has applauded the tariff increase, stating, “Led by China, global steel overcapacity continues to grow, even as overall global steel demand is being impacted by the sharp downturn in the Chinese construction sector. Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers.”
In addition, supporting Trump’s decision to raise steel tariffs, the Steel Manufacturers Association (SMA) noted that this action will strengthen the steel industry that has suffered from global overcapacity, largely driven by China. “Since the tariffs were first announced in 2018, our industry has invested over $20 billion in growth and modernization. Increasing the tariffs will promote greater investment and ensure that steel imports do not surge into the US market,” SMA added.
Commenting on the order and calling it “unjustified”, the Mexican steel association Canacero stated that the tariffs mainly affect its trading partners and the value chain in the region, which faces unfair competition from China and other Asian countries. Canacero said, “The best solution to combat global steel overcapacity and unfair trade practices is to work together as a region. Mexican steel does not represent a threat to the US market; on the contrary, we are complementary, and our country is completely open to US exports.
Meanwhile, in Europe, Gunnar Groebler, president of the German Steel Association and the CEO of Salzgitter, stated that the EU exports roughly four million mt of steel to the US every year, which is 20 percent of its total steel exports, making the US the EU’s largest trade partner. Stating that the erratic tariff policy of the US is hitting Europe's economy hard, especially Germany, Groebler added that he thinks steel imports to the US from the EU and vice versa should not be hampered by tariffs at all. He also pointed out that the EU is also facing increased import pressure amid rising volumes of cheaper Asian steel.
