President Donald Trump has announced an increase in U.S. steel tariffs from 25 percent to 50 percent, citing the need to prevent billions of dollars in foreign steel imports. The announcement was made at a U.S. Steel facility in Pennsylvania, where Trump also discussed a new partnership allowing Nippon Steel to acquire the American company. This move has drawn sharp criticism from the European Union and Canada, with officials warning of potential countermeasures and economic consequences.
President Trump stated, “At 50 percent, they can no longer get over the fence,” as he detailed the tariff increase from 25 percent to 50 percent on foreign steel imports, during his speech the West Mifflin steel facility. Trump also announced aspects of a new “partnership” that will allow Japanese-owned Nippon Steel to acquire U.S. Steel.
The steel tariff was originally set at 25 percent during Trump’s first term under Section 232 of the 1962 Trade Expansion Act. After returning to office in January, Trump reversed deals previously made by the Biden administration with Japan, the United Kingdom, and the European Union that had eased the tariffs’ impact. He further tightened restrictions by eliminating a program that permitted importers to apply for exemptions for specific steel products.
Trump’s announcement follows two court rulings this week that struck down his use of the International Economic Emergency Powers Act to impose broad reciprocal tariffs on countries worldwide, including China, Canada, and Mexico. A third federal court subsequently issued a temporary stay on one ruling, keeping the tariffs in effect for now. Administration officials indicated that they would continue to use Section 232 as the basis for imposing duties and expressed confidence in defending the IEEPA tariffs on appeal.
The change comes as the U.S. continues trade negotiations with the EU and other partners who are seeking relief from the tariffs. The main U.S. steel industry group expressed support for the increased tariff. Kevin Dempsey, president of the American Iron and Steel Institute, stated, “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.” The group also noted that Chinese steel exports to the world have more than doubled since 2020.
The European Union and Canada are among the partners most affected by the increased duties. The EU had recently secured a postponement of the increase in general duties on exports to the US, scheduled for July. Candace Laing, president of the Canadian Chamber of Commerce, commented, “Dismantling efficient, competitive, and reliable cross-border supply chains like we have in steel and aluminium comes at a high cost to both countries.”
A European Commission spokesperson responded to the tariff announcement by stating, “We strongly regret the announced increase of US tariffs on steel imports from 25% to 50%,” according to Reuters. The spokesperson added, “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.” Referring to ongoing transatlantic trade talks, the spokesperson said, “the tariff increase also undermines ongoing efforts to reach a negotiated solution” and the “EU is prepared to impose countermeasures, including in response to the latest US tariff increase,” if necessary.
The US president defended the new tariffs, saying that doubling taxes on imported steel would “further strengthen the steel industry in the United States.” He later announced on Truth Social that aluminium tariffs would also rise from 25% to 50%. Both increases are scheduled to take effect on Wednesday, 4 June.
Government data indicates that steel prices have increased by 16% since the president took office in mid-January. As of March 2025, the price of steel in the US was $984 per metric tonne, compared to $690 in Europe and $392 in China, according to the US Department of Commerce.
In the past year, the United States produced about three times as much steel as it imported, with Canada, Brazil, Mexico, and South Korea as the main sources of imports. Analysts have credited tariffs from the president’s first term with strengthening the domestic steel industry.
