The White House of the United States announced an increase in tariffs on imported steel and aluminum to 50%

On February 10th, Trump signed an executive order, announcing a 25% tariff on all imported steel and aluminum to the United States. On March 12th, Trump officially made the measure of imposing a 25% tariff on all imported steel and aluminum into the United States come into effect. On May 30th, US President Trump stated at a rally in Pennsylvania that he would raise the tariff on imported steel from 25% to 50%. On June 3rd, the White House issued a statement saying that the tariff on imported steel and aluminum and their derivatives would be raised from 25% to 50%, and this tariff policy would come into effect at 00:01 on June 4th, 2025, Eastern Time of the United States. The statement said that the tariff on steel and aluminum imported from the United Kingdom would remain at 25%. Starting from July 9th, 2025, the US could adjust the applicable tariff rate according to the provisions of the "Environmental Policy Statement" and set import quotas for steel and aluminum. If the UK was found not to comply with the relevant provisions of the "Environmental Policy Statement", the applicable tariff rate could be raised to 50%.

This decision by the United States has, to a certain extent, had complex and multi-faceted impacts on various fields such as the economy and trade. Firstly, it has an impact on the US economy. High tariffs may protect the domestic steel and aluminum industries in the short term and reduce the impact of foreign competition on related US industries. However, in the long term, overly high tariffs may lead to increased costs, decreased efficiency, and even trigger trade wars, causing negative impacts on the US economy. In addition, construction companies have warned that tariffs may increase the cost of key building materials, leading to a reduction in supply and an increase in the cost of new residential buildings. The share prices of US steel companies, such as the US Steel Corporation and the Ohio Steel Company, rose sharply after the market close, but the tariff costs may eventually be passed on to consumers, leading to price increases. Industries that rely on steel and aluminum, such as car manufacturers, have seen an increase in costs, which may further affect product prices and competitiveness. When the Trump administration imposed tariffs on steel and aluminum in 2018, although it created 14,000 jobs in the steel industry, the downstream manufacturing industries lost 75,000 jobs, and it required taxpayers to spend $900,000 per year to save each steel job, indicating that the overall effectiveness of the policy on the employment market is questionable.

Secondly, it has an impact on international trade. The US's previous imposition of tariffs on automobiles has already triggered countermeasures from economies such as the European Union and Japan. This upgrade of steel and aluminum tariffs may intensify the vicious cycle of "tariffs against tariffs" among countries, forming regional trade barriers and hindering the global economic recovery. At the same time, the US may pressure its allies to impose "secondary sanctions" on Chinese steel and aluminum products or restrict third-country transshipment trade through traceability, attempting to weaken China's hub position in the global industrial system and promote the "de-Industriization" of global supply chains. Canada, as the largest supplier of steel and aluminum to the United States, accounted for nearly a quarter of its steel imports and about half of its aluminum imports in 2023. It has warned that tariffs will lead to "disastrous" unemployment, factory production slowdowns, and supply chain disruptions. The US has tightened its exemption policy for Mexico, requiring steel to be "melted and cast" in the US, Canada, and Mexico, and aluminum to come from no countries other than China, forcing Chinese enterprises to adjust their supply chains or find new transportation routes. Although in the short term, high tariffs may protect the domestic steel and aluminum industries of the United States, in the long term, overly high tariffs may lead to increased costs, decreased efficiency, and even trigger trade wars, thereby having a negative impact on the US economy.

In conclusion, the US's decision to raise tariffs on imported steel and aluminum to 50% seems to aim at protecting domestic industries, but it may trigger a series of chain reactions. In the long run, this policy is not conducive to the stability and recovery of the global economy. Instead, it may increase the uncertainty of the supply chain and hinder the progress of the free trade process.