The global aluminium and steel industries are in for another jolt as US tariffs take a sharp new turn. Just a day after a Federal Court ordered a halt to the implementation of tariffs, sending through global optimism, President Donald Trump reversed course dramatically. Not only did he secure a suspension of the court's ruling, but he also announced a doubling of tariffs on aluminium and steel imports, from 25 per cent to 50 per cent, effective Wednesday, June 4, 2025.
What seemed like a moment of relief quickly turned into renewed uncertainty as celebrations over the court's block were cut short by the President's swift and unexpected escalation.
Trump’s decision to doube tariffs - whimsical or strategic?
While addressing a rally in Pittsburgh, Pennsylvania, President Trump reiterated the same justification for doubling the tariffs, and that was nothing but ‘national security’. Dismissing all the labels the Federal Court attached to the tariff, such as calling the move a safeguard measure, Trump emphasised that the decision is aimed squarely at strengthening the domestic aluminium and steel industries and cutting dependence on China.
But why he singled out China when he applied double tariff equally to the European Union, India, Canada, Brazil, Mexico, and other key trade partners? China is indeed the largest exporter of both steel and aluminium outside the Americas, valued in the range of USD 800 to USD 810 million. Moreover, Trump held China responsible of violating a recently negotiated tariff truce, despite the two countries having agreed to reduce tit-for-tat duties following talks in Geneva earlier in May. Without offering specifics, Trump claimed that China had broken the agreement. US Trade Representative Jamieson Greer only added that China had failed to remove non-tariff barriers as promised under the deal.
Donald Trump began by saying, “We're going to bring it from 25 per cent to 50 per cent—the tariffs on steel into the United States of America—which will even further secure the steel industry in the United States.”
Later he posted about his decision on social media that the tariff hike would also cover aluminium “Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers.”
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