U.S. President Donald Trump’s decision to implement 50% tariffs on steel and aluminium imports has triggered widespread concern from international trade partners and domestic businesses. The move, which came into effect on Wednesday, marks the second increase in metal tariffs since March and is aimed at protecting the American steel industry.
Speaking at a rally at a U.S. Steel factory, Trump claimed the high tariffs would make it impossible for foreign competitors to “steal” American industry, stating, “At 25%, they can get over that fence. At 50%, they can no longer get over the fence.”
However, critics warn the tariffs could backfire, raising production costs across industries and straining global trade relationships. The U.S., the world’s largest steel importer after the EU, relies heavily on metals from Canada, Brazil, Mexico, and South Korea.
Domestic businesses are already feeling the heat. Rick Huether, CEO of Independent Can Co., which imports European steel for consumer goods like cookie tins, said the move is causing “chaos” and uncertainty. Huether fears clients will turn to cheaper alternatives like plastic due to rising costs.
Companies like Drill Rod & Tool Steels in Illinois, which import specialty metals not made in the U.S., are seeing tariff bills nearly double. “It’s one punch after the other,” said supply chain director Chad Bartusek, who has already had to reduce worker hours due to customer caution and rising costs.
Internationally, the UK was spared the full brunt, maintaining a 25% tariff, as trade talks with the U.S. continue. Nonetheless, UK steel exporters are bracing for significant losses. “The introduction of 50% tariffs immediately puts the shutters up,” said Gareth Stace of UK Steel.
Economists argue the policy is more harmful than helpful. Erica York of the Tax Foundation noted Trump’s previous tariffs created only 1,000 steel jobs but cost the broader U.S. economy 75,000 jobs. She expects even deeper losses now.
With rising production costs, global retaliation looming, and businesses under pressure, many are questioning whether Trump’s latest trade move is a protective measure—or a costly gamble.
