Trump Doubles Steel and Aluminum Tariffs to 50%, Igniting Global Trade Tensions

May 31, 2025, West Mifflin, Pennsylvania - U.S. President Donald Trump announced plans to increase tariffs on imported steel and aluminum from 25% to 50%, a move aimed at bolstering domestic industry but likely to escalate global trade disputes. Speaking at U.S. Steel’s Mon Valley Works near Pittsburgh on May 30, Trump tied the tariff hike to a $14.9 billion deal between Nippon Steel and U.S. Steel, emphasizing job preservation in the U.S. steel sector.

The new tariffs, effective June 4, have already driven a 26% surge in Cleveland-Cliffs Inc. (CLF) shares, as seen in the finance card above, reflecting investor optimism about domestic steelmakers’ profits. However, international allies like Canada and Australia have condemned the move, warning of economic fallout and strained supply chains.

Tariff Hike and Domestic Impact

The decision to double tariffs on steel and aluminum, announced during a rally in Pennsylvania, intensifies Trump’s trade war strategy. The U.S., the world’s largest steel importer outside the European Union, brought in 26.2 million tons of steel in 2024, valued at $147.3 billion for 289 product categories, including both raw metals and derivatives like stainless steel sinks and aluminum frying pans.

The finance card above shows Cleveland-Cliffs (CLF) at $7.78 per share on May 30, up significantly from $5.83, reflecting market confidence in domestic producers. U.S. Steel (X) also rose to $54.23, nearing its 52-week high of $54.03, as investors anticipate higher profits from reduced foreign competition. However, the tariff increase is expected to raise steel and aluminum prices, impacting industries and consumers reliant on these materials.

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Global Backlash and Economic Concerns

Canada’s Chamber of Commerce swiftly criticized the tariffs as detrimental to North American economic security, with President Candace Laing warning that disrupting integrated steel and aluminum supply chains will harm both U.S. and Canadian economies. Australia’s Trade Minister, Don Farrell, called the hike “unjustified” and an act of “economic self-harm,” pledging to advocate for their removal.

Recent industry reports suggest that the tariffs could increase costs for U.S. manufacturers, particularly in the automotive and construction sectors, which rely heavily on imported metals. The move follows Trump’s accusations of China violating a critical minerals trade agreement, further straining global trade relations.

Did You Know?
The U.S. imported $98 billion worth of aluminum and $49 billion worth of steel products in 2024, with Canada and Mexico as the top suppliers, accounting for nearly 40% of steel imports.

Context of Trump’s Trade Policy

The tariff hike builds on Trump’s earlier trade measures, including 25% levies on steel and aluminum implemented in March 2025 under Section 232 national security authority. While Trump briefly considered a 50% tariff on Canadian steel, he initially backed off before this latest escalation. The policy aligns with his broader agenda to revive U.S. manufacturing, particularly in Rust Belt states like Pennsylvania, a key electoral battleground.

However, critics argue that higher tariffs could exacerbate inflation, with steel prices already up 15% in 2025 due to prior trade restrictions. The announcement also coincides with Trump’s support for the Nippon Steel-U.S. Steel deal, which he claims will safeguard American jobs, though some analysts warn of potential long-term market distortions.