Trump boosts steel tariffs by a factor of two, including Germany in the impacted regions
Former U.S. President Donald Trump Announces Doubling of Steel and Aluminum Tariffs
In a surprising announcement on Friday local time, former U.S. President Donald Trump declared a doubling of tariffs on steel and aluminum imports to 50 percent. The new rates will take effect on "Wednesday, June 4," as Trump stated on his online service Truth Social.
Trump made the announcement during a visit to a steel producer US Steel plant in the state of Pennsylvania. He asserted, "We will increase the tariffs on steel into the United States of America from 25 percent to 50 percent, which will further secure the steel industry." He added, "No one will be able to avoid this," and mentioned that the surcharges would also apply to aluminum imports.
Trump has been pursuing a hard-line trade policy since the beginning of his second term in January, a move that has disrupted global supply chains and stock markets. Last week, he threatened to impose tariffs on EU goods worth 50 percent, but then later postponed them initially. Trump has already imposed several tariffs on the EU, including 25 percent tariffs on cars, steel, and aluminum. The EU Commission, representing the 27 member states, has been negotiating with the USA and has threatened counter-tariffs in case of failure.
Germany is among the top ten exporters of steel to the USA. In 2023, around four million tons were exported from the entire EU to the USA, with approximately one million tons coming from Germany alone, mostly special steel. The USA was the largest importer of steel after the EU in 2024, with Canada, Brazil, and Mexico being the main countries of origin for imported steel products.
Trump's announced increase in tariffs has broader implications, as his trade policy has kept courts busy. A U.S. trade court had lifted most of Trump's tariffs on Wednesday. However, the tariffs can remain in effect during the appeal process since the government has filed an appeal against the ruling.
Trump also praised the cooperation between US Steel and the Japanese steel company Nippon Steel in Pennsylvania during his visit to the plant. After announcing an agreement had been reached between US Steel and Nippon Steel on Monday, Trump confirmed that US Steel would remain "under US control," with no layoffs or spin-offs. Instead, Nippon Steel would invest billions of dollars in new plants and the modernization of mines.
However, the USW union has criticized the lack of involvement in negotiations with Nippon Steel. USW President David McCall stated on Friday that he was unaware of the details of this "planned partnership" and that "the devil is in the details." The union had previously noted that there was no indication that Nippon was deviating from its previous position of requiring a controlling stake in US Steel to invest.
- The increase in tariffs on steel and aluminum imports, announced by former U.S. President Donald Trump, signals a shift in manufacturing industry policy-and-legislation, affecting general news and finance business.
- Trump's hard-line trade policy, which includes tariffs on products from various countries, has disruptive effects on global supply chains and stock markets.
- The EU Commission, representing the 27 member states, has been negotiating with the USA regarding Trump's tariffs, with threats of counter-tariffs if negotiations fail.
- Trump's tariff announcements and subsequent negotiations in the steel industry extend beyond domestic policy and politics, reaching international manufacturing and general news.
