The United States has raised tariffs on foreign steel and aluminum imports from 25% to 50%, a move President Donald Trump says will protect domestic industries from cheap overseas metal. The decision has drawn sharp criticism from key trading partners, particularly Canada and Mexico, which face significant economic repercussions.
The higher tariffs, enacted by an executive order signed Tuesday, apply to all nations except the United Kingdom. Britain secured a temporary reprieve due to a preliminary trade deal struck with the U.S. last month. Its steel and aluminum exports will remain subject to a 25% duty until at least July 9, pending further negotiations.
“These increased tariffs will more effectively counter foreign countries that continue to dump low-priced, excess steel and aluminum into the U.S. market, undermining American industries,” the White House order stated.
Canada and Mexico, the top and third-largest steel suppliers to the U.S., respectively, will bear the brunt of the new levies. Canadian Prime Minister Mark Carney’s office said Ottawa is engaged in “intensive negotiations” to secure an exemption. Meanwhile, Mexican Economy Minister Marcelo Ebrard called the tariffs “unfair and unsustainable,” noting that Mexico imports more U.S. steel than it exports.
European Union officials are scrambling to avoid the higher tariffs ahead of a critical meeting Thursday between EU Trade Commissioner Maroš Šefčovič and U.S. Trade Representative Jamieson Greer in Paris. While the 50% rate could devastate European exporters, Brussels is unlikely to retaliate immediately, given ongoing negotiations over other Trump-imposed trade barriers.
The EU has already approved a €21 billion package of counter-tariffs on U.S. goods, set to take effect if no agreement is reached. Both the U.S. and EU share concerns over Chinese steel overproduction, which has destabilized global markets and forced major job cuts in Europe’s industrial sector.
The tariff hike comes just days after Trump approved the contentious acquisition of U.S. Steel by Japan’s Nippon Steel—a decision that drew bipartisan criticism. The president, however, framed the new tariffs as a win for American workers, declaring on social media: “Our steel and aluminum industries are coming back like never before.”
Mexico has announced it will formally request an exemption from the higher tariffs on Friday, while the UK remains cautiously optimistic about finalizing its trade deal before the July deadline. With global tensions rising, the move underscores Trump’s aggressive trade strategy as he seeks to reshape international markets in America’s favor.