In a dramatic escalation of his ongoing trade policy strategy, US President Donald Trump has signed an executive order to double tariffs on imported steel and aluminium, raising the duties from 25% to 50% effective June 5, 2025.
According to the White House statement, the objective behind the move is to counter the impact of foreign dumping practices, where low-cost excess steel and aluminium are sold into the US market, allegedly undermining domestic industries.
Notably, the new tariffs will not apply to metal imports from the United Kingdom, which will continue to face the existing 25% rate. This carve-out reflects ongoing negotiations between the US and UK aimed at aligning tariff frameworks and establishing import quotas under their previous trade agreement.
The order emphasised that raising tariffs would "better support American steel and aluminium manufacturers" and "reduce the national security threat" posed by high levels of metal imports. Trump, speaking last week at a steel plant in Pennsylvania, said:
The administration believes the higher duty will help level the playing field for US producers and preserve critical manufacturing sectors tied to national defense.
The announcement has sparked concern among key US trading partners. The European Union has strongly objected to the abrupt policy shift, warning that it undermines progress toward a negotiated resolution. Over the weekend, EU officials signalled that they are prepared to retaliate, escalating the risk of a trade dispute.
This comes as broader trade talks are ongoing. Back in April, the Trump administration imposed sweeping 10% tariffs across nearly all trading partners and proposed higher rates for dozens of countries. While some of those tariffs were suspended during negotiations, that pause is set to expire in early July, adding urgency to diplomatic efforts.
Since returning to the office in January 2025, Trump has reintroduced aggressive trade tactics, including duties on a range of goods from automobiles to raw materials. These moves have caused volatility in global financial markets and raised concerns among multinational corporations over supply chain stability.
The steel and aluminium tariff hike is expected to impact both global commodity prices and manufacturing costs, especially for industries reliant on imported raw materials. Market participants now await potential countermeasures and the response from the US. allies.
Read More: Best Metal Stocks In India In June 2025- NALCO, Hindalco, and Vedanta, Among Others.
The decision to double steel and aluminium tariffs marks a significant moment in Trump’s economic policy playbook—one that prioritises domestic industry protection but risks reigniting trade wars. With trade talks hanging in the balance, global markets and political observers will be watching closely for the ripple effects of this latest move.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jun 5, 2025, 9:06 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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