On Tuesday President Donald Trump signed a proclamation doubling tariffs on imported aluminum and steel products from 25% to 50%, effective June 4, under Section 232 of the Trade Expansion Act. The move marks the latest escalation in the administration’s effort to shield U.S. manufacturers from what officials describe as persistent global overcapacity and foreign dumping.
What the proclamation does
The new proclamation affects both primary and derivative aluminum and steel products, increasing import tariffs from 25% to 50% across the board—with the exception of imports from the United Kingdom, which will remain at the original 25% rate for now under terms of the recently signed U.S.-UK Economic Prosperity Deal (EPD).
The president justified the move by citing recent findings from the Department of Commerce showing that:
- Aluminum imports continue to threaten U.S. national security.
- Domestic aluminum production is well below capacity, with utilization falling from 61% in 2019 to 55% in 2023.
- Past tariffs slowed but did not reverse long-term damage caused by foreign overproduction, particularly from subsidized producers abroad.
Why it matters
President Trump emphasized that foreign nations have been undercutting U.S. prices by offloading low-cost metals, often subsidized by state-controlled economies. The administration says this weakens U.S. industry and threatens national defense and infrastructure resilience.
“We must ensure the United States has the industrial strength to meet any crisis,” Trump said in a statement. “These increased tariffs will help American industry reach the production levels needed to protect our security and rebuild our economy.”
Enforcement gets tougher
The administration also announced stricter customs enforcement, warning importers against misreporting metal content. U.S. Customs and Border Protection will impose severe penalties—including fines, import bans, and criminal liability—for inaccurate steel or aluminum declarations.
The new 50% tariff will apply only to the metal content of imported goods. Existing tariff laws, including reciprocal tariffs and measures under the International Emergency Economic Powers Act, will govern the non-metal components.
Industry reaction and impact
U.S. steel and aluminum producers have welcomed the announcement, arguing that the move is long overdue. Industry leaders highlight job growth, new factory investments, and reduced dependence on foreign supply chains during Trump’s first term when he enacted similar tariffs.
Critics warn the move could raise costs for manufacturers that rely on imported materials. However, recent studies cited by the administration claim that:
- Tariffs had minimal long-term inflationary effects.
- They contributed to reshoring and domestic investment in key industries.
- A 10% global tariff model could boost the U.S. economy by $728 billion and create 2.8 million jobs, according to a 2024 analysis.
Next steps
The White House says it will closely monitor compliance and impact, especially under the new U.S.-UK agreement. If conditions are not met, the administration could adjust quotas or impose further penalties after July 9, 2025.
For now, the new 50% aluminum and steel tariffs are in full effect. Businesses have been advised to consult updated Harmonized Tariff Schedule (HTSUS) guidance and ensure import declarations comply with the new regulations.
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