Jun. 4, 2025 - On June 3, 2025, President Donald Trump signed an executive order doubling tariffs on imported steel and aluminum from 25% to 50%. The move is aimed at countering what the administration described as the "flooding of cheap, excess metal" by foreign producers, particularly China.

In 2024, United States imported $10.9B of Raw Aluminium, being the 61st most imported product (out of 1,227) in United States. In 2024, the main origins of United States' Raw Aluminium imports were: Canada ($7.75B), United Arab Emirates ($1.13B), Argentina ($459M), Bahrain ($348M), and South Africa ($320M).

The fastest growing origins for Raw Aluminium imports in United States between 2023 and 2024 were: Canada ($236M), India ($50.9M), and Argentina ($25.3M). In March 2025, United States imported Raw Aluminium mostly from Canada ($807M), United Arab Emirates ($252M), India ($86.6M), Bahrain ($53.7M), and Argentina ($53.5M).

According to data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce, the U.S. imported approximately 28.86 million net tons of steel in 2024. The top sources and their shares were: Canada: 6.56 million net tons — 22.7%; Brazil: 4.50 million net tons — 15.6%; Mexico: 3.52 million net tons — 12.2%; South Korea: 2.81 million net tons — 9.7%; Vietnam: 1.36 million net tons — 4.7%; Japan: 1.18 million net tons — 4.1%; Germany: 1.07 million net tons — 3.7%; Taiwan, China: 1.01 million net tons — 3.5%; China: 0.51 million net tons — 1.8%. 

These figures highlight the U.S.'s reliance on close trade partners—especially Canada—for essential industrial metals. China plays a relatively minor role in U.S. steel imports.

Canada

Canada, the top supplier of steel and aluminum to the U.S., was hit hard by the new tariffs. Prime Minister Mark Carney condemned the move as a “direct attack on Canadian workers” and promised retaliatory measures. The Canadian government is negotiating for exemptions, while industry groups warn the tariffs destabilize North American supply chains.

Mexico

Mexico criticized the U.S. decision as “illogical and unfair” and is seeking an exemption. The government warned of damage to bilateral trade ties and is evaluating countermeasures.

European Union

The EU expressed "strong regret" and stated that the tariff hike undermines transatlantic trade talks. The European Commission has prepared €21 billion in retaliatory tariffs on U.S. industrial and agricultural goods. German steelmaker Salzgitter warned of serious impacts on European industry.

United Kingdom

The UK is the only country temporarily exempt from the 50% tariff, retaining the previous 25% level until July 9. The British government is working toward a permanent deal to protect its steel and automotive exports. However, British steelmakers still face risks of canceled orders.

Australia

Australia did not receive an exemption, and its steel exports were significantly affected. Treasurer Jim Chalmers said the government is still negotiating with the U.S., while opposition leader Sussan Ley criticized the lack of support for a traditional ally and expressed willingness to work across party lines to secure a deal.

India

India and the U.S. are in bilateral talks to resolve the long-standing WTO dispute over metals tariffs. Washington has challenged India's retaliatory tariffs as baseless. Both sides aim to avoid further trade escalation.

South Korea

Shares of South Korean firms like POSCO and Hyundai Steel dropped sharply following the U.S. announcement. The government is working on mitigating measures. Hyundai Steel plans to build a $5.8 billion plant in Louisiana by 2029 to localize production and avoid future tariffs.

Other Countries

South Africa said the U.S. tariff hike effectively nullifies benefits it receives under AGOA (African Growth and Opportunity Act). Rather than retaliate, South Africa is seeking an exemption and working to diversify its export markets to Asia, Europe, and the Middle East.

Global Economic Impact

Economists warn the tariff hike could slow global growth. The OECD downgraded its 2025 global GDP forecast from 3.3% to 2.9%, with U.S. growth projected at 1.6%. Bank of England Governor Andrew Bailey said Trump’s tariff policies are "undermining the global trading system" and hurting economic activity.