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Date: 04-jun-2025 | By: Nuztrend Team
President Donald Trump has reintroduced one of his signature trade policies, announcing a substantial increase in tariffs on foreign steel and aluminum. Effective June 4, 2025, the tariff rate has doubled from 25% to 50%, targeting the majority of U.S. steel and aluminum imports.
This bold move, confirmed by the Office of the U.S. Trade Representative (USTR), marks a sharp shift back toward protectionist trade policies that were central to Trump’s first term. It has already triggered concern among global trading partners and industry stakeholders.
The administration argues that the decision is aimed at protecting American manufacturers from “unfair competition and overcapacity driven by foreign subsidies.” According to Trump, the policy is necessary to revitalize domestic steel and aluminum industries and reduce U.S. dependence on foreign metals.
The United Kingdom has been granted a temporary exemption from the 50% tariff due to an ongoing bilateral trade negotiation that includes provisions for raw materials and industrial supply chains. However, the exemption is conditional and may be revisited in 90 days.
“We are pleased with the provisional relief granted to British exporters,” said UK Trade Secretary Amelia Barnes. “But we are closely watching developments to ensure long-term stability for our steel producers.”
The tariffs will significantly impact major exporters to the U.S., including:
Industry experts warn that increased costs could ripple through sectors such as construction, automotive manufacturing, and consumer goods.
Trade groups and economists are already sounding the alarm. Canada’s Trade Minister described the move as “deeply disappointing,” and Mexico has hinted at potential retaliatory tariffs. Meanwhile, global markets showed signs of volatility following the announcement, with steel and aluminum futures rising sharply.
“This level of trade disruption could push up prices and stall growth across multiple sectors,” warned Caroline Kim, an analyst at Global Trade Insights. “It also raises the specter of a broader trade war just as global supply chains were beginning to stabilize.”
As the policy takes effect, all eyes will be on how the Biden-Trump transition-era trade dynamics play out, particularly as Trump gears up for the 2026 midterms. The tariffs may boost domestic industry in the short term but risk alienating critical allies and driving up costs for U.S. manufacturers and consumers alike.
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