The US has doubled tariffs on most imported steel and aluminum to 50% from 25%, effective Wednesday. President Donald Trump unexpected action is a dramatic acceleration of his escalating global trade war. The move comes ahead of a self-imposed deadline for trading partners to present their “best offer” to avert even wider import duties that are scheduled to go into effect in early July.
The White House is applying this tariff boost as leverage to get new trade agreements for industrial products, agriculture, digital trade, and others. Only the UK has managed to lock in a preliminary deal so that it doesn’t feel the full brunt—for now.
Trump Tariff Hike Kicks Overnight
Late Tuesday, President Trump signed an executive proclamation implementing the new 50% rate, which took effect at 12:01 am Wednesday. The previous 25% tariff had been effective since March.
White House economic adviser Kevin Hassett, at an event on the steel industry in Washington, stated that the administration looked at the numbers and determined that a greater rate was needed. “More help is needed,” he stated.
UK Secures Partial Exemption
The United Kingdom, the sole nation to agree to a provisional accord during a 90-day tariff hiatus on wider tariffs, is still at the prior 25% level—at least through July 9. The UK, however, is not one of the leading steel or aluminum exporters to the US, so the practical effect remains minimal.
Canada and Mexico hardest hit
Census Bureau figures reveal the higher tariffs will hit hardest with Canada and Mexico. The US’s biggest supplier of aluminum, Canada sends volumes twice the amount of the next ten exporters combined. Mexico too has significant at stake even though it imports more American steel than it sells.
Mexican Economy Minister Marcelo Ebrard declared the tariffs “unsustainable and unfair,” and ensured that Mexico will seek an exemption on Friday.
Markets respond sharply
The swift surge shook up both metals markets. Prices on aluminum have already doubled in premium so far this year. With not much room for expanded domestic production, volumes of imports won’t fall short—unless the price is high enough to muzzle demand.
Wednesday also was the deadline for countries to make proposals to stave off additional tariffs due July 8. US. Trade Representative officials requested nations submit concrete plans, such as cuts in tariffs, quotas on American goods, and measures to eliminate non-tariff barriers. In return, they guaranteed immediate feedback and a potential “landing zone” for future rates.
Few deals thus far
Up to now, only the UK has proceeded with a deal, and that too is still a framework for further negotiations. Japan, in particular, has not been sent the request letter. Japan’s minister of state for administrative reform, Yoshimasa Hayashi, stated that negotiations are under way and are a priority.
White House spokeswoman Karoline Leavitt confirmed the outreach to trade partners. “It’s just a friendly reminder,” she said of the letters. But the message is clear: comply or face higher tariffs soon. As the July deadline nears, the pressure on global allies is mounting.
