US imposes 50% tariffs on steel and aluminum, UK exempted
New US tariffs hike steel and aluminum import duties to 50%, exempting the UK. Trading partners react as Mexico seeks exclusion.
The United States has officially raised tariffs on steel and aluminum imports to 50%, a move announced by President Donald Trump to protect domestic industries. The new rates took effect on June 4, 2025, with the UK being the only major trading partner granted an exemption, maintaining a 25% tariff.
The decision intensifies Trump's trade policies, targeting what he calls unfair foreign competition, particularly from China. The White House stated the tariffs aim to counter low-priced metal imports that threaten US national security and industrial stability.
Mexico, one of the largest steel exporters to the US, criticized the tariffs as unsustainable. Economy Minister Marcelo Ebrard argued that the US has a trade surplus in steel with Mexico, making the tariffs illogical. Mexico plans to formally request an exclusion, similar to the UK's status.
The European Union has warned of potential retaliatory measures, while Canada expressed concerns over disrupted supply chains. The UK's temporary reprieve hinges on ongoing trade negotiations, with Trump hinting at possible adjustments after July 9 if terms are unmet.
US manufacturers relying on imported steel fear rising costs, with some already reporting price hikes and delayed investments. Analysts warn that the tariffs could lead to job losses in sectors dependent on affordable metal imports, offsetting gains in domestic steel production.
Steel prices in the US have surged by 16% since Trump's return to office, adding pressure on industries from construction to automotive manufacturing. Critics argue the policy risks inflation and trade conflicts, while supporters claim it revitalizes American metal production.
The tariffs mark another escalation in global trade tensions, with implications for economies worldwide. As negotiations continue, businesses brace for further disruptions in supply chains and market volatility.
