Tariff hikes on steel and aluminum kick in Wednesday

Beginning tomorrow, the U.S. will implement a 50% tariff on imported steel and aluminum, doubling the previous rate. 

As Reuters reports, this move―announced by President Donald Trump―follows his accusation that China breached an agreement to reduce mutual trade barriers. 

The announcement caused a spike in U.S. prices for both metals, with aluminum premiums jumping 54% and hot rolled coil steel rising by 5%. Meanwhile, shares of U.S. steelmakers rose significantly, while foreign manufacturers, especially in Asia and Europe, saw declines.

“Higher prices are also likely to weigh further on U.S. steel demand from the manufacturing sector, which we already expect to contract this year,” says analyst Eoin Dinsmore at Goldman Sachs.

The U.S. remains the largest steel importer globally, with over 26 million tons imported in 2024. According to the Reuters report, U.S. aluminum producers welcomed the change as a protection against subsidized imports, despite skepticism over the tariffs’ longevity. Trade negotiations continue, with countries like South Korea and India seeking exemptions or reduced tariffs. 

Notably, Hyundai Steel has planned a $5.8 billion factory in Louisiana to mitigate future tariff impacts, though it won’t be operational until 2029. 

Reuters has the full story.