Trump signs order doubling US aluminum, steel tariffs to 50%

US President Donald Trump on June 3 signed an executive order doubling tariffs on aluminum and steel imports from 25% to 50%, effective June 4, to bolster national security and support domestic industries.

The new rates will take effect on June 4, with exceptions under the May 8 trade agreement between the US and the UK. Trump announced the plan May 30 on his social media platform Truth Social.

In the order, Trump said the increase is necessary to ensure that steel and aluminum imports "will not threaten to impair the national security."

"In my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries," the executive order said.

The increased tariff rates also provide greater support to industries in US markets, Trump said in the order.

"Although the previously imposed steel and aluminum tariffs have helped provide critical price support in the US market, they have not yet enabled these industries to develop and maintain the rates of capacity production utilization that are necessary for the industries' sustained health and for projected national defense needs," the order said.

The executive order also implements provisions of the US-UK Economic Prosperity Deal -- a bilateral free trade agreement -- that will eliminate tariffs on US imports of British steel and aluminum, with the possibility of adjusting rates on July 9 if the UK does not meet the deal's terms.

Aluminum prefers 'tailored approach'

After Trump's May 30 announcement that the US would double aluminum tariffs, most of the US aluminum industry said it needed a consistent trade policy and market certainty to support investments and demand. This is the second change in aluminum tariffs since Trump took office.

The Aluminum Association, a trade group representing US aluminum producers, also emphasized the need for a tailored approach to tariffs that penalizes unfair trade while maintaining important supply sources, especially from Canada. The US has four aluminum smelters, and it relies on Canadian primary aluminum production to feed its furnaces.

Steel cheers

Steel industry leaders applauded the doubling of tariffs.

"American-made steel is at the heart of President Trump's plan to revitalize domestic manufacturing and return our country to an economic powerhouse. This action will strengthen a vital industry that has suffered from global overcapacity, largely driven by China," the Steel Manufacturers Association, a US steel producers trade group, said in a May 30 statement.

American Iron and Steel Institute's President and CEO Kevin Dempsey said the increased tariffs will keep the American steel industry strong.

"Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers," he said in a May 30 statement.