Steel and Aluminium, The Latest Items to Get The Tariff Treatment

The US is set to double tariffs on steel and aluminium imports to 50%. The increase, due to take effect on June 4, adds pressure on European exporters and threatens the stability of transatlantic trade talks. 

The European Commission issued a sharp rebuke, warning that the decision not only disrupts ongoing negotiations but also risks retaliatory countermeasures.

The timing is politically charged. Trump’s announcement came at a campaign-style event at US Steel’s Mon Valley Works, where he also discussed a pending deal with Japan’s Nippon Steel. Although the $14.9 billion full acquisition hasn’t been finalized, Trump now supports a version of the deal after initially vowing to block it. 

Nippon has promised to maintain US operations and jobs, while increasing investment, moves that may soften domestic criticism, particularly from the powerful United Steelworkers union, which remains wary of foreign ownership.

Steel prices in the US are already elevated, rising 16% since January 2025. As of March, domestic prices stood at $984 per metric tonne, well above the $690 average in Europe and $392 in China. 

What Does This Mean for Me?

The announcement follows legal confusion, with competing US court decisions briefly halting and then reinstating Trump’s tariff authority. As the global economy contends with high interest rates, inflationary concerns, and shifting exchange rates, fresh uncertainty in metals markets could ripple far beyond US borders. European leaders now face difficult decisions as they prepare potential countermeasures.