Trump Announces Major Tariff Increase on Steel Imports
Significant Tariff Hike on Steel Imports
Washington, May 31: President Donald Trump has declared his intention to raise tariffs on foreign steel imports to 50 percent, effective next week, which could have significant implications for steel producers worldwide.
Trump announced on the social media platform X, "We will be implementing a 25 percent increase, raising the tariffs on steel imports to the United States from 25 percent to 50 percent. This move will further strengthen the domestic steel industry."
He later confirmed that the new tariff rate would be enforced starting June 4, according to reports from a news agency.
On his Truth Social account, Trump expressed, "It is my great honor to increase the tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum sectors are experiencing a remarkable resurgence. This will be another significant boost for our dedicated steel and aluminum workers. MAKE AMERICA GREAT AGAIN!"
This proposed increase is part of Trump's ongoing trade strategy focused on raising tariffs, following a recent court ruling that deemed his extensive reciprocal tariffs illegal, although an appeals court has temporarily upheld them.
The initial 25 percent tariffs on most steel imports to the U.S. were implemented in March as part of the Trump administration's broader initiative to decrease trade deficits and enhance local manufacturing.
Recent data indicated that South Korea's steel exports to the U.S. fell by nearly 19 percent year-on-year in March.
In March, the total value of steel exports to the U.S. was approximately $340 million, marking an 18.9 percent decline compared to the same month last year.
While it is challenging to determine the exact impact of U.S. tariffs on South Korea's steel exports due to the nature of advance transactions, there may still be some effects.
Korean steel manufacturers are actively developing strategies to respond to the U.S. tariffs, with some companies planning to boost their production capabilities within the U.S.
For instance, Hyundai Steel Co. has announced plans to invest $5.8 billion in establishing an electric arc furnace-based steel mill in Louisiana by 2029, marking its first production facility outside of South Korea.