As announced last week, the Trump Administration doubled tariffs on imported steel and aluminum from 25% to 50%.
The move excludes the United Kingdom, which remains at a 25% tariff rate pending the outcome of a recent trade agreement.  
The administration justified the tariff increase under Section 232 of the Trade Expansion Act of 1962, citing concerns over subsidized metals, particularly from China, flooding global markets and undermining U.S. producers. The White House emphasized that these measures are necessary to prevent further erosion of the domestic steel and aluminum industries. 
The broader economic impact of these tariffs is projected to be modest, with Bloomberg Economics estimating a potential reduction in U.S. GDP by 0.15% and a 0.1% increase in consumer prices over the next three years.
However, industries reliant on steel and aluminum, such as construction and automotive manufacturing, may face higher input costs, potentially leading to job losses if these costs cannot be passed on to consumers. 
The Federal Reserve Board's Division of Research found that Trump’s 2018 tariffs led to the direct loss of seventy-five thousand manufacturing jobs, with additional losses from retaliatory tariffs imposed by other countries, often on non-steel products.
Canada, as the largest supplier of aluminum and a major exporter of steel to the U.S., is expected to be significantly affected. The tariffs could disrupt the supply chains of U.S. industries that depend on Canadian metals, especially given that approximately two-thirds of primary aluminum used in the U.S. originates from Canada.
Canadian Prime Minister Mark Carney minced no words on his reaction: “The latest tariffs on steel and aluminum are unjustified, they’re illegal, they’re bad for American workers, bad for American industry, and of course for Canadian industry as well,” Carney told reporters Wednesday.
Canada exported approximately 6 million metric tons of steel to the United States, accounting for about 11% of total U.S. steel imports. Those exports are approximately half of Canada's steel production, according to the World Steel Association.
“At a 50 per cent tariff rate, the U.S. market is effectively closed to Canadian steel, leaving billions of dollars of Canadian steel without a market,” stated Catherine Cobden, President and CEO of the Canadian Steel Producers Assocaition.
"These new tariffs could also mean up to USD2bn export losses for the metals sector in Canada over the remainder of the year, USD 1bn for Mexico, USD 0.6bn for South Korea’s metal sector," says Allianz Research.
This effective embargo would customarily bring rise to entreaties for exemptions, but the White House has granted few exemptions thus far. While over a dozen countries received exemptions in 2018, only the UK has secured a tentative deal in this round.
Finnish stainless steel producer Outokumpu has expressed concerns over the impact of recent U.S. tariff increases on its operations. CEO Kati ter Horst stated, “Throughout the quarter, stainless steel demand remained muted, and tariffs caused further uncertainty.”
The second-largest stainless steel producer in the U.S, Outokumpu has decided against expanding its cold rolling capacity in the U.S. at this time. Ter Horst explained, “Given the current unpredictable market environment with significantly increased imports in the recent years, the result of our feasibility study did not support making a capital-intensive investment in additional cold rolling capacity for the time being.”  
The company remains committed to the U.S. market and will monitor the situation closely. Ter Horst added, “Now, as the newly introduced tariffs may decrease import pressure, we will follow the situation closely. We support free trade, but it is crucial to ensure a level playing field both in the U.S. and Europe.”  
Tuesday June 3, 2025 President Trump issued a proclamation under Section 232 of the Trade Expansion Act, doubling tariffs on imported steel and aluminum articles and their derivatives from 25 percent to 50 percent ad valorem, effective June 4, 2025.
The action follows updated findings from the Secretary of Commerce indicating that the current tariff levels have not sufficiently enabled the U.S. steel and aluminum industries to sustain production capacity necessary for national defense. The proclamation cites continued dumping of low-cost steel and aluminum as a persistent threat to national security.
The tariff increase applies to all countries except the United Kingdom, which remains subject to the previous 25 percent rate under the terms of the U.S.-UK Economic Prosperity Deal (EPD) signed May 8, 2025. However, the Secretary of Commerce is authorized to raise the UK rate if EPD compliance falters.
Imports under privileged foreign status admitted prior to June 4 are grandfathered under previous rates. All other imports, including those in U.S. foreign trade zones, must comply with the revised tariff schedule. U.S. Customs and Border Protection will enforce strict reporting requirements for steel and aluminum content and may impose severe penalties for noncompliance.
The proclamation also amends Executive Order 14289 to avoid overlapping tariff applications and clarifies that only the steel and aluminum content of composite articles is subject to the increased rates. Non-metal content remains subject to other tariffs, including those under Executive Order 14257 on reciprocal trade.
The Secretary of Commerce will continue monitoring import volumes and recommend further action as necessary. No drawback will be permitted for duties paid under the revised proclamation.
Source: White House Proclamation, June 3, 2025.
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