By doubling the levies, foreign companies ‘can no longer get over the fence,’ Trump said.
WASHINGTON—President Donald Trump’s 50 percent tariffs on steel and aluminum went into effect at midnight on June 4, following through on last week’s announcement at a U.S. Steel facility.
The measure, enacted through an executive order signed on Monday, doubles the previous 25 percent rate and is intended to boost domestic production.
“In my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries,” Trump’s proclamation read.
“Although the previously imposed steel and aluminum tariffs have helped provide critical price support in the United States market, they have not yet enabled these industries to develop and maintain the rates of capacity production utilization that are necessary for the industries’ sustained health and for projected national defense needs.”
Trump announced his plan first on May 30 during a rally held at the U.S. Steel Corporation’s plant near Pittsburgh to celebrate the newly announced partnership with Japan’s Nippon Steel.
“We are going to be imposing a 25 percent increase. We’re going to bring it from 25 percent to 50 percent,” Trump said.
By doubling the levies on the metal, foreign companies “can no longer get over the fence,” he added.
Steel stocks surged after Trump’s announcement—Cleveland-Cliffs rose 23 percent, while Steel Dynamics and Nucor both jumped 10 percent soon after the news.
Kevin Dempsey, president and CEO of the American Iron and Steel Institute, applauded the decision, stating that the move will keep the American steel industry strong.
“Led by China, global steel overcapacity and production continues to grow, even as overall global steel demand is being impacted by the sharp downturn in the Chinese construction sector,” Dempsey said in a statement.
“As a result, Chinese steel exports to the world have more than doubled since 2020, surging to 118 million [metric tons] in 2024—more than total North American steel production,” he noted. “Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers.”
By Andrew Moran and Emel Akan
