On June 4, 2025, the Trump Administration doubled tariffs on imported steel and aluminum from 25% to 50%, the same day as its deadline for trading partners to give their “best offer” in bids to avoid import tax rates on other goods from taking effect next month. The increase applies to nearly all trading partners with Britain as the only exception (Britain is the only country that has reached a preliminary trade agreement with the U.S).
About a quarter of all steel used in the U.S. is imported. The increased tariffs are expected to hit Canada (#1 in steel shipment volume to the U.S.) and Mexico (#3 in steel shipment volume to the U.S.) particularly hard.
The tariff increase further shakes the market for aluminum, which has seen prices more than double this year. With little current capacity to boost domestic production, imports are likely to remain steady unless the price increases undercut demand.
Proponents argue this increase is aimed at bolstering domestic industry similar to steel and aluminum tariffs previously imposed in 2018, which some say created around 1,000 American jobs. However, the increased costs for raw materials are expected to impact manufacturers and consumers by raising prices on a wide range of goods from engines to beverage cans.
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