President Donald J. Trump signed a Proclamation to increase the tariff to 50 percent on steel and aluminum on June 3, 2025.
He indicated that he is taking action to protect America’s critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity.
The tariff on steel and aluminum imports was increased from 25 percent to 50 percent, with the higher tariff set to go into effect on June 4, 2025.
Tariffs on steel and aluminum imports from the United Kingdom will remain at 25 percent, with possible changes or quotas starting July 9, 2025, depending on the status of the U.S.-UK Economic Prosperity Deal.
The steel and aluminum tariffs will apply only to the steel and aluminum contents of imported products, whereas the non-steel and non-aluminum contents of imported products will be subject to other applicable tariffs.
The administration is cracking down on false import declarations by requiring strict reporting of steel and aluminum content, with tough penalties like fines or loss of import rights for violators.
Foreign nations have been flooding the U.S. market with cheap steel and aluminum, often subsidized by their governments.
A report from the first Trump Administration found that steel import levels and global excess were weakening our domestic economy and threatening to impair national security.
The report found that excess production and capacity has been a major factor in the decline of domestic aluminum production.
While the domestic steel industry briefly achieved 80 percent capacity utilization in 2021, subsequent trade pressure has depressed domestic production. In 2022 and 2023, capacity utilization fell to 77.3 percent and 75.3 percent, respectively. High import volumes from sources exempt from Section 232 tariffs were a major factor in depressing domestic production volumes.
For aluminum, there was an increase in the capacity utilization rate between 2017 and 2019, from 40 percent to 61 percent during that period. But since 2019, the aluminum capacity utilization has once again seen a steady decline, falling from 61 percent to 55 percent between 2019 and 2023.
The U.S. does not want to be in a position where it would be unable to meet demand for national defense and critical infrastructure in a national emergency.
- In the President’s first term, he imposed Section 232 tariffs to protect the American steel and aluminum industries from unfair foreign competition.
- The steel tariffs that the President implemented led to thousands of jobs gained and higher wages in the metals industry.
These tariffs were hailed as a “boon” for Minnesota’s iron ore industry, with state officials crediting tariffs for bolstering the local economy.
Steel and aluminum imports drastically decreased under president Trump, falling by nearly a third from 2016 to 2020.
The tariffs led to a wave in investment across the U.S., with more than $10 billion committed to build new mills.
Published June 2025
