Key Points
- The U.S. doubled steel and aluminum tariffs from 25% to 50%, effective immediately.
- The UK is the only exception, holding a 25% rate under a preliminary deal. Canada and Mexico are hardest hit, being top metal exporters to the U.S.
- Global metal prices surged, particularly for aluminum, with little expected increase in U.S. capacity.
- Trading partners must submit offers to avoid additional tariffs set for early July.
The United States has doubled its tariff rate on most imported steel and aluminum to 50%, escalating trade tensions and pressing global partners to submit their best trade offers. President Donald Trump signed an executive order Tuesday night, enacting the tariff hike from 25% to 50%, effective Wednesday.
White House economic adviser Kevin Hassett explained that initial 25% tariffs had helped U.S. industry, but further protection was needed. The tariff increase applies to all countries except the UK, which has a preliminary trade agreement with the U.S. and will maintain a 25% rate until at least July 9.
The impact will be felt most by Canada and Mexico, the top and third-largest steel exporters to the U.S., respectively. Canada, in particular, dominates U.S. aluminum imports, accounting for roughly half of all aluminum imported into the country. With limited domestic capacity to ramp up production quickly, aluminum prices have already more than doubled in 2025.
Canadian Prime Minister Mark Carney’s office stated that intense negotiations were ongoing to remove the tariffs. Mexico’s Economy Minister Marcelo Ebrard criticized the levies as unfair, noting Mexico imports more steel from the U.S. than it exports and plans to seek an exemption on Friday.
This tariff escalation coincides with a White House deadline for countries to submit offers to avoid broader “Liberation Day” tariffs, which are expected to take effect in early July. The U.S. Trade Representative sent letters requesting proposals on tariffs, non-tariff barriers, agricultural product access, and digital trade commitments. Countries may learn within days whether their offers fall within the U.S.’s acceptable “landing zone.”
Despite the urgency, Japan confirmed it had not received a letter from the U.S., though negotiations are ongoing.
