Trump’s 50% Tariff on Steel and Aluminum Imports Takes Effect Amid Global Backlash
US President Donald Trump’s decision to double tariffs on steel and aluminum imports from 25% to 50% came into effect on Wednesday, triggering widespread concern among American allies and major global trading partners.
The tariff hike, first announced by Trump at a campaign rally in Pennsylvania on May 30, is aimed at bolstering the domestic metal industry. However, it has drawn immediate condemnation from Canada, the European Union, and Australia, with several nations warning of possible retaliatory measures.
“We’re going to bring [tariffs] from 25% to 50%… This will further secure our steel industry,” Trump said to a cheering crowd, later reiterating on Truth Social that the move was a “BIG jolt of great news” for American steel and aluminum workers.
The announcement immediately impacted market sentiment. Shares of Cleveland-Cliffs Inc., a major US steelmaker, surged by 26% in after-hours trading as investors anticipated higher profits due to reduced foreign competition.
Canada’s Chamber of Commerce slammed the move as “antithetical to North American economic security,” warning that dismantling efficient cross-border supply chains would hurt both economies. The United Steelworkers union in Canada also called the action a “direct attack” on Canadian industry and workers.
The European Commission said the tariff increase adds uncertainty to an already fragile global economy and vowed to respond if necessary. “We are prepared to impose countermeasures,” a spokesperson stated.
Australia’s Trade Minister Don Farrell joined the chorus of criticism, calling the decision “unjustified and not the act of a friend.”
Trump’s tariff escalation comes amid accusations that China has violated a past agreement with the US to ease trade restrictions on critical minerals. Although China was not directly named in this round of tariff hikes, the broader context suggests the policy is part of Trump’s ongoing strategy to intensify pressure on key competitors.
The US is the world’s largest steel importer, excluding the EU, having brought in 26.2 million tons of steel in 2024 alone, according to the Department of Commerce. The new tariffs are likely to drive up costs across multiple sectors, from construction to manufacturing, and may eventually impact consumer prices.
Tariffs on steel and aluminum were among Trump’s earliest trade actions after retaking office in January 2025. While the initial 25% tariff introduced in March caused friction with allies, the decision to double it now escalates tensions further, particularly with Canada, one of the US’s largest steel suppliers.
