Trump's Bold Move: Steel Tariffs Set to Surge to 50% Next Week
Major Tariff Increase Announced
Washington: President Donald Trump has announced plans to significantly increase tariffs on imported steel, raising them from 25% to 50% starting next week, a move that could have widespread implications for steel manufacturers worldwide.
In a statement on the social media platform X, Trump declared, "We are going to be imposing a 25 percent increase. We’re going to bring it from 25 percent to 50 percent — the tariffs on steel into the United States of America — which will even further secure the steel industry in the United States."
He later confirmed that this new tariff rate would take effect on June 4, according to reports from a news agency.
On his Truth Social account, Trump expressed his pride in raising tariffs on steel and aluminum, stating, "It is my great honour to raise the Tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!"
This proposed increase is part of Trump's ongoing trade strategy, which has focused on raising tariffs. This announcement follows a recent court ruling that deemed his extensive reciprocal tariffs illegal, although an appeals court has temporarily upheld these tariffs.
The initial 25% tariffs on most steel imports to the U.S. were implemented in March as part of the Trump administration's broader initiative to reduce trade deficits and support domestic manufacturing.
Recent data indicated that South Korea's exports of steel products to the U.S. fell nearly 19% year-on-year in March.
In March, steel exports to the U.S. totaled $340 million, reflecting an 18.9% decrease compared to the same month last year.
While it is challenging to gauge the exact impact of U.S. tariffs on South Korean steel exports due to the nature of advance transactions, there may still be some effects.
In response to the U.S. tariffs, Korean steel manufacturers are strategizing, with some planning to boost production within the U.S. Hyundai Steel Co. has announced a $5.8 billion investment to build an electric arc furnace-based steel mill in Louisiana by 2029, marking its first production facility overseas.