Trump doubles steel, aluminium tariffs to 50%, exempts UK

U.S. President Donald Trump has signed an executive order that doubles tariffs on imported steel and aluminium from 25% to 50%. The new tariffs are set to take effect on June 4.

The move aims to regulate imports in a way that protects U.S. national security, Caliber.Az reports, citing the White House website.

“I have concluded that it is necessary to increase tariffs on steel and aluminium to ensure they do not threaten our national security,” the order states.

The increased tariffs will apply to all countries except the United Kingdom. The surprise move by the Trump administration to hand Britain a carve-out from its latest tariff increases provided some respite for the prime minister, who is facing mounting frustration from industry over delays to implementing the US-UK trade accord.

Announcing the new tariffs via an executive order, Trump said the UK would escape a 50 per cent levy on steel and aluminium “to allow for the implementation of the US-UK Economic Prosperity Deal” — but British metal producers will contend with a 25 per cent tax until the pact takes effect. Under the terms of the agreement, the UK will receive a zero-tariff quota for steel if it meets US security requirements to exclude China from its supply chains.

Earlier in May, the U.S. and the U.K. reached a bilateral agreement establishing a “Trade Zone for aluminium and steel” alongside a secure supply chain for pharmaceutical products.

The Trump administration had originally imposed 25% tariffs on steel, aluminium, and automobiles, sparking global debates on trade protectionism.

Economists have voiced concerns about the potential negative impact of the tariff hike on the U.S. economy. They point to studies indicating that previous increases in steel tariffs resulted in higher input costs for manufacturers and net job losses in the industrial sector. Analysts also warn that the latest move could signal a broader shift toward protectionist trade policies, potentially leading to higher tariffs on other sectors such as automobiles, lumber, and microchips. If such measures are implemented, the average U.S. tariff rate could rise significantly, fueling trade tensions and increasing costs for consumers and businesses alike.

By Khagan Isayev