Steel Proclamation Published

According to the Proclamation on Adjusting Imports of Steel into the United States, issued by President Donald J. Trump on February 10, 2025, the administration has reinstated and expanded the 25% ad valorem tariff on imported steel and derivative steel products. The proclamation cites national security concerns under Section 232 of the Trade Expansion Act of 1962, as amended, and asserts that steel imports “are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.”

The administration has justified the renewed tariff expansion by referencing the original findings of the Secretary of Commerce in a January 11, 2018, report, which concluded that “excess capacity in the global steel industry has begun to increase again in recent years.”

Canada, Mexico Highlighted

The proclamation specifically highlights surging imports from Canada and Mexico, stating that “volumes from both Canada and Mexico increased overall, from 7.77 million metric tons in 2020 to 9.14 million metric tons in 2024.” It further asserts that “authorities in those countries have supported otherwise uncompetitive producers with subsidies and other interventions that have exacerbated the global excess capacity crisis.”

The proclamation also addresses the ineffectiveness of previous exemptions and trade agreements, stating that “alternative agreements with trading partners including Australia, the members of the EU, Japan, and the United Kingdom have been less effective in eliminating the threatened impairment of U.S. national security.” The document notes that imports from these exempted countries have increased, accounting for “82 percent of total steel imports by 2024.” It further claims that “as steel import market share has increased, the domestic industry’s performance has been depressed, resulting in capacity utilization rates persistently lower than the 80 percent target level highlighted in the Secretary’s report.”

Regarding Ukraine, the proclamation acknowledges the previous temporary exemption but argues that it has not primarily benefited Ukraine’s steel industry. Instead, the document claims that “these imports enter the U.S. market subject to neither the ad valorem tariff proclaimed in Proclamation 9705, nor the tariff-rate-quota system applicable to other imports of steel articles from EU producers,” effectively facilitating trade circumvention.

To address these concerns, the proclamation terminates previous trade agreements and exemptions, declaring that “as of March 12, 2025, all imports of steel articles and derivative steel articles from Argentina, Australia, Brazil, Canada, EU countries, Japan, Mexico, South Korea, and the United Kingdom shall be subject to the additional ad valorem tariff proclaimed in Proclamation 9705.”

No Exclusion Process

It further removes the product exclusion process, stating that “the Secretary is no longer authorized to provide relief from the additional duties” and that “the product exclusion process as authorized in clause 3 of Proclamation 9705… is terminated, effective immediately.”

The proclamation concludes by affirming that these actions will be actively monitored, with the possibility of further adjustments if necessary to safeguard national security. “The United States will monitor the implementation and effectiveness of these actions in addressing our national security needs, and I may revisit this determination, as appropriate,” the document states.

Fact Sheet Touts Tariffs' Impact

An accompanying Fact Sheet issued by the White House asserts that the 2018 "steel tariffs that President Trump implemented led to thousands of jobs gained and higher wages in the metals industry." 

A 2023 report by the U.S. International Trade Commission found that the Section 232 tariffs reduced imports of affected steel products by 24%, increased domestic steel production by 1.9%, and raised steel prices in the U.S. by 2.4%. However, the report also noted that these tariffs led to a 0.6% decrease in production in downstream industries that consume steel and aluminum, resulting in a $3.5 billion reduction in output in 2021.

Further analysis indicates that the tariffs increased production costs for manufacturers reliant on steel and aluminum inputs, leading to higher prices for consumers and reduced employment in those sectors. The Tax Foundation estimated that repealing the Section 232 tariffs and quotas could increase long-run GDP by $3.5 billion and create more than 4,000 jobs. Other estimates, such as those from Harvard's Lydia Cox and UC Davis' Kadee Russ, suggest the job losses from steel and aluminum tariffs were as high as 75,000.