Trump Unleashes Tariff Shock, Doubles Steel, Aluminium Import Duty To 50 Per Cent

Trump’s declaration came as he highlighted the $14.9 billion deal between Nippon Steel and US Steel, which he praised as another step toward preserving domestic employment in the steel industry.

The US, which imported 26.2 million tons of steel in 2024 — more than any other country except for the EU — is poised to feel the economic ripple effects of this policy shift.

Source : Freepik

During a rally in West Mifflin, Pennsylvania,  US President Donald Trump revealed his intention to raise import duties on steel and aluminium products to 50 per cent, doubling the existing 25 per cent tariff. The announcement signals a renewed push to shield American manufacturers and heighten pressure on foreign producers amid an intensifying global trade standoff.

“We are going to be imposing a 25 per cent increase. We're going to bring it from 25 per cent to 50 per cent — the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” Trump stated at the event. The rally took place near Pittsburgh, close to US Steel’s Mon Valley Works — a historic symbol of the region’s industrial roots and manufacturing decline, reported Reuters.

Trump’s declaration came as he highlighted the $14.9 billion deal between Nippon Steel and US Steel, which he praised as another step toward preserving domestic employment in the steel industry.

Tariffs Extended to Aluminum, Industry Reacts

Following his remarks, Trump confirmed via social media that the increased levy would also target aluminium imports, with the new rates set to take effect on Wednesday. Investors responded quickly, sending shares of Cleveland-Cliffs Inc surging by 26 per cent in after-hours trading, driven by expectations that the heightened tariffs would benefit US steelmakers.

The move drew immediate international criticism. Canada’s Chamber of Commerce denounced the measure, warning it posed a threat to regional economic stability. “Unwinding the efficient, competitive and reliable cross-border supply chains like we have in steel and aluminium comes at a great cost to both countries,” said chamber president Candace Laing.

Australia’s government, a long-standing US ally in the Indo-Pacific, also issued a sharp rebuke. “They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade,” said Trade Minister Don Farrell, who pledged to “continue to engage and advocate strongly for the removal of the tariffs.”

Steel Imports and National Security Grounds

The US, which imported 26.2 million tons of steel in 2024 — more than any other country except for the EU — is poised to feel the economic ripple effects of this policy shift. Higher costs for raw materials are likely to impact a broad swath of American industries and consumers.

The tariff expansion builds on measures Trump introduced shortly after retaking office in January, when he reinstated a 25 per cent duty on most steel and aluminum imports. These duties were enacted under Section 232 of the Trade Expansion Act, citing national security grounds, and apply to a wide range of goods — from raw metal to consumer products like aluminium pans, gas stoves, and steel hinges.

Census Bureau figures showed that imports under 289 different tariff categories were valued at $147.3 billion in 2024, with roughly two-thirds involving aluminium and the rest steel. By comparison, Trump’s 2018 tariff packages targeting Chinese industrial exports were worth $50 billion in annual import value.