Increase in Steel Import Tariffs by Trump, as China Faces Intensified Trade Tensions
Steel Tariffs Soaring: Trump's Plan to Crank 'em Up
Donald Trump, the US president, is breaking relationships and escalating the trade war with his announcement to jack up tariffs on imported steel. Starting Monday, tariffs will skyrocket from 25% to 50%, a move that'll beef up the American steel industry.
Trump pronounced his plan at a rally for steel workers in West Mifflin, Pennsylvania, on Friday. According to him, this steep hike in tariffs will further cement the steel industry's hold in the States. Trump later confirmed the new levy—also targeting aluminum imports—would kick in on Wednesday, with a promise of American industries rising like never before.
The president affirmed, "This tariff boost will bring another wave of fantastic news for our devoted steel and aluminum workers. MAKE AMERICA GREAT AGAIN!" He then vented, "We don't want America to build the future with crappy steel from Shanghai. We want it constructed with the strength and guts of Pittsburgh!"
A UK government insider told our website that the UK is exempt from this new tariff rate following the signing of a US-UK trade agreement earlier this month. The source emphasized that the deal underlines the significance of early agreement with the Trump administration.
Insight: According to reports, the UK's agreement with the US grants the US a quota at most favored nation rates for British steel, aluminum, and derivative products.
A UK government spokesperson stated, "The UK was the first country to secure a trade deal with the US earlier this month and we remain steadfast in our commitment to safeguarding British business and jobs across critical sectors, including steel." They added that they are communicating with the US to gain insights into the implications of the recent tariff increase and to provide clarity for the industry.
Sources within the US confirmed that the 50% tariff shouldn't impact UK steel exports to the US because Britain will be excluded from steel tariffs, as per the deal sealed by the UK. British officials are confident that they are exempt, although they acknowledge that nothing is certain under Trump's rule.
British Steel Benefiting?Earlier, Trump claimed China violated an agreement to mutually roll back tariffs and trade restrictions for essential minerals. In March, Trump levied a 25% tariff on all foreign steel and aluminum imports to protect US manufacturing and jobs. If implemented, these tariffs could escalate the cost of products containing steel or aluminum—such as cars or soft drink cans—for American consumers.
In the past, Trump threatened Canada with 50% levies on imports. Meanwhile, the province of Ontario threatened to charge 25% more for the electricity it supplies to the US. Canada's most populous province provides electricity to over 1.5 million American homes and businesses in Minnesota, New York, and Michigan.
Canadian Prime Minister Mark Carney branded the proposed 50% tariffs an "attack" on Canadian workers, families, and businesses.
Reality Check: Roughly a quarter of all steel used in the US is imported, with Mexico, Canada, Japan, South Korea, and Germany being the main suppliers. In 2024, the US imported 6.6m tonnes of steel from Canada, while 3.5m tonnes came from Mexico. The US is also dependent on imports for aluminum, with Canada supplying 3.2m tonnes in 2021 alone.
The escalating trade war between the US and its international partners, as exemplified by President Trump's proposal to increase steel tariffs to 50%, has become a major focus in policy-and-legislation and general-news discussions. This policy move could significantly affect the steel industry, possibly creating a surge in domestic production, as stated by Trump at a recent rally. However, the UK's steel industry seems to be an exception to these tariffs, based on a recent US-UK trade agreement.
