Waking up to Higher Prices: Trump's 50% Tariffs on Steel and Aluminum are Now Implemented
Trump swiftly implements 50% tax on imported steel and aluminum products.
Get ready to dig deeper into your pockets! US President Donald Trump's announced doubling of import tariffs on steel and aluminum is now in action. As of midnight local time (06:01 UTC), a 50 percent rate applies to imports into the US, up from 25 percent previously. Trump intends to level the playing field and bolster the domestic industry with this move.
Steel and aluminum imports from the UK are spared, with a 25 percent rate still applicable, thanks to a trade pact between the US and the UK.
Economy Feeling the Heat: US Putting Pressure, von der Leyen Warns of Trade War Trump sealed his decree on Tuesday. The rise in tariffs is predicted to make imports tougher and result in higher prices for consumers, such as when purchasing cars, kitchen appliances, or cans.
In 2024, the US was the world's second-largest steel importer after the EU. The primary countries of origin are Canada, Brazil, and Mexico, with Germany also among the top ten exporters to the US. According to the German steel industry association Wirtschaftsvereinigung Stahl, the US is the most significant sales market for the European steel industry. The US imports aluminum mainly from Canada, the United Arab Emirates, China, and South Korea.
Economy Trump Fanning the Flames: Tariffs Heat Up Trump has already imposed or threatened numerous tariffs to force more advantageous trade agreements in his view. Some of these have been the subject of legal challenges, but the new duties on steel and aluminum are unaffected.
EU's Response Remains Elusive
It remains to be seen how the EU will respond. The European Commission voiced strong criticism over the weekend, warning of a potential response before the summer. The move is perceived as an affront, particularly given the recently intensified negotiations aimed at resolving the trade dispute.
Economy Moving Away from the US? Opportunities Germany Could Explore Talks between the EU and the US are ongoing, with a further meeting scheduled for Wednesday between EU Trade Commissioner Maros Sevcovic and US Trade Representative Jamiey Greer in Paris.
If Trump insists on the increased tariffs, the EU could impose counter-tariffs in the short term. Member states have already laid the groundwork for this in April. Extra duties could impact US goods such as jeans, motorcycles, beef, or citrus fruits. Measures on industrial and agricultural goods like automobiles, sweet potatoes, and whiskey are also being considered.
Navidi Trade War Escalates: Trump Intends to Tax Foreign Capital Intense negotiations between the EU and the US have carried on since the first round of Trump's tariff announcements. Originally, the EU had planned countermeasures in mid-April but put them on hold following Washington's 90-day reprieve. This window was meant for negotiations. The EU has consistently said that it will take decisive action against US tariffs if negotiations fail.
- Tariffs
- USA
- Steel Industry
- EU
- Donald Trump
Enrichment Insights:
- The EU has publicly expressed regret and concerns over the tariff increase, citing additional costs for consumers and businesses on both sides of the Atlantic[1].
- The EU is pondering potential countermeasures, including additional import duties on US products such as aircraft, autos, medical devices, and industrial machinery[3].
- A public consultation on potential countermeasures was conducted by the EU in early May 2025, considering restrictions on EU exports of scrap metals and chemicals[3].
- The EU noted that the tariff increase undermines ongoing attempts to reach a negotiated solution in transatlantic trade talks[1].
- In contrast, the UK has been spared these increased tariffs, provided it satisfies certain conditions related to the US-UK Economic Prosperity Deal by July 9, 2025[2].
- This escalation in tariffs on steel and aluminum imports by the US could have far-reaching implications for the community policy, finance, politics, general-news, and industries such as steel and automotive, within both the US and the EU.
- The EU is considering implementing employment policy changes in response to the increased tariffs on US imports, potentially including counter-tariffs on US goods and restrictions on EU exports of scrap metals and chemicals, to maintain a competitive and sustainable economic landscape.
