Trump to Double Steel and Aluminium Tariffs to 50% Starting June 4

Trump Raises Tariffs on Metal Imports to Support Domestic Industry

Former US President Donald Trump announced on Friday that he will raise tariffs on steel and aluminium imports from 25% to 50%, effective June 4. The statement was made during a visit to a US Steel Corp. facility and later confirmed via Trump’s Truth Social post.

Tariffs Aim to Strengthen US Metal Industry

According to Trump, the move is intended to revitalize US-based production and reduce foreign dependence. The US currently imports a significant portion of its metal needs, including 58% of its aluminium from Canada, and over 23% of its steel from the same source.

Trade Data Highlights US Dependency on Foreign Metals

• Aluminium imports:
  • Canada: 58%
  • UAE: 6%
  • Scrap imports: 90% from Canada & Mexico
• Steel imports:
  • Canada: 23%
  • Brazil: 16%
  • Mexico: 12%
  • South Korea: 10%

These statistics, based on US government data, underscore the importance of these trade partners, and the potential ripple effect of such tariff increases on industries and consumers.

Potential Economic and Trade Impacts

This decision could strain trade relationships, particularly with Canada and Mexico, and may trigger retaliatory measures. Economists at ING warn that this protectionist approach could also increase input costs for US manufacturers and heighten inflationary pressure.

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