Trump 50% Tariffs on Foreign Steel and Aluminium Shake Global Markets

The United States has officially doubled tariffs on foreign steel and aluminium to 50 per cent, following President Donald Trump’s announcement to bolster the American steel industry. This controversial move, formalised through an executive order, has sparked discontent among key trading partners and trading blocs across the world. While the White House cites job creation and industrial competitiveness as key motivators, many critics believe the measures could economically backfire.

Among the largest suppliers impacted by the tariff hike are Canada and Mexico. Both nations together account for a significant proportion of US steel imports, with Canada leading as the top exporter. The Canadian Prime Minister’s office stated that intense negotiations are ongoing to ease the restrictions, while Mexican officials have called the policy unsustainable and unjustified – particularly as the United States enjoys a trade surplus in steel with Mexico.

Amid ongoing issues with China and allegations of oversupply, the tariff hike has intensified global trading tensions. Beyond North America, the European Union is seeking a separate exemption through diplomatic channels. The EU’s Trade Commissioner is set to meet with US Trade Representative Jamieson Greer in Paris. Although major European steel producers, including Germany’s ThyssenKrupp Steel, have struggled against declining domestic demand and competition from Chinese manufacturers, the EU is unlikely to retaliate immediately due to wider trade negotiations already underway with the United States.

In a move seen as partly symbolic, President Trump pointed to the controversial acquisition of US Steel by Japan’s Nippon Steel as a sign of renewed foreign investment in American industries. However, this has not dampened concerns domestically and abroad over the long-term economic cost of such protectionist measures. Trump maintains that the tariffs will revive steel and aluminium industries, posting on social media, “Our steel and aluminium industries are coming back like never before.”

Notably, Britain has been spared the more severe tariffs during a temporary arrangement, with its steel and aluminium exports currently subject to a 25 per cent levy. Talks to finalise a bilateral trade agreement between the UK and the US are ongoing and could set a precedent for negotiations with other trading partners. With the global steel market already beset by challenges, these new levies have further amplified uncertainty.

As trading partners scramble to respond, industries relying on imported steel or aluminium worry about rising production costs. Meanwhile, global markets remain on edge as the full effects of Trump’s dramatic tariff increase unfold.