Donald Trump's 25% tariff hike on steel and aluminium comes into effect. Here's how it will impact industries

U.S. President Donald Trump’s move to increase steel and aluminum tariffs by up to 50 percent will take effect on Wednesday and is anticipated to affect various sectors, including automakers and consumer goods.

The tariffs on steel and aluminium imports, initially set at 25 percent, were increased to 50 percent following an executive order signed by Trump late Tuesday. These duties had stayed at 25 percent since Trump's March 12 directive to eliminate exemptions on steel and raise the aluminum tariff.

“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50% – the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," Trump was quoted as saying at a rally in Pennsylvania.

In a social media post, Trump said, “It is my great honor 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 another BIG jolt of great news for our wonderful steel and aluminium workers."

According to the Associated Press, although tariffs on imports from other countries have been doubled, steel and aluminium imports from the United Kingdom will remain subject to a 25 percent tax following the UK’s recent trade agreement with the US.

The increase in steel and aluminum tariffs doubles the stakes in Trump’s global trade conflict and occurred shortly after he accused China of breaching a deal with the US to jointly reduce tariffs and trade barriers on essential minerals.

Here's how it will impact other sectors

Auto sector and household goods

According to AP report, the tariff increase is anticipated to affect various sectors, including the automotive industry and household goods. This change will lead to higher prices for consumers since steel and aluminum imported into the US are essential materials for producing items such as soup cans, paper clips, refrigerators, and vehicles.

Grocery items

The increase in tariffs may affect grocery items in the US, along with companies involved in construction and transportation. Steel and aluminum, commonly used in packaging for many household goods—especially canned products—could see an impact.

Construction and transportation

The tariffs on aluminium and metals have broader effects on the construction and transportation industries overall, since numerous essential building components and materials are manufactured using these metals.

Steel prices have risen by 16% since Donald Trump took office in mid-January, based on the government's Producer Price Index.

By March 2025, the cost of steel in the U.S. reached $984 per metric ton, which is substantially higher compared to prices in Europe ($690) and China ($392), according to the U.S. Commerce Department.

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