President Donald Trump announced on Friday that he plans to double the tariffs on steel and aluminum imports—increasing the charge from 25% to 50%.
The tariff escalation comes at a precarious time, as Trump’s “reciprocal” tariffs are immersed in legal trouble at the court level and many U.S. businesses are struggling to contend with the back-and-forth nature of the levies.
Trump’s announcement also coincides with the “blockbuster” agreement between U.S. Steel and Japanese steel company Nippon, a deal which he promised will include no layoffs and the steelmaker will be “controlled by the USA.”
The steepened tariffs could potentially further escalate tensions between the U.S. and its previous top steel partners, which include Canada, Brazil, Mexico, South Korea, and Vietnam. As the U.S.’ number one steel importer, Canada—with whom the U.S. has already escalated tensions due to Trump’s other tariffs—stands to feel the pressure of this latest move.
Here’s what to know about Trump’s doubled tariffs and what experts have to say about it.
What has Trump said about doubling the steel and aluminum tariffs?
Trump announced his decision during a rally at U.S. Steel’s Mon Valley Works–Irvin Plant near Pittsburgh in West Mifflin, Penn., surrounded by hardhat-donned steel workers.
“We’re going to bring it from 25% percent 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 told the crowd, offering his reasoning that the increased charges will ultimately help the domestic industry. “Nobody’s going to get around that.”
He later posted about his decision on social media, revealing that the tariffs would also be raised for aluminum.“Our steel and aluminum industries are coming back like never before,” Trump wrote on Truth Social. “This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers.”
But Wayne Winegarden, a senior fellow at the Pacific Research Institute, argues that the Trump Administration has yet to fully explain the exact math behind the number for the steel and aluminum tariffs.
“They’ve never given any justification why 25% is the right number, let alone why 50% is,” Winegarden says. “It was just doubled.”
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When are the doubled tariffs due to come into effect?
In Trump’s announcement post on Truth Social, he said that the doubled tariffs would come into effect on Wednesday, June 4. Although it’s worth noting that other tariff threats—such as the proposed 50% charge on the E.U. and the majority of Trump’s “reciprocal” tariffs that he announced on April 2—have been temporarily paused to allow time for negotiations. It remains to be seen if an extension will be granted for this new June 4 date.
The back-and-forth on tariff dates and rates has left many businesses in limbo, though Felix Tintelnot, professor of economics at Duke University, says that with steel and aluminum, the Administration has generally followed through on the timings they’ve announced.
The question, he says, is how long the 50% will stand, as he’s seen the rates “flip-flopping all the time.” Tintelnot argues that the resulting uncertainty is causing real harm to U.S. businesses and thus, in turn, impacting workers, despite Trump’s claims that the tariffs will bring large amounts of money to the U.S. steel industry.
“We’re talking about expansion of capacity of heavy industry that comes with significant upfront investments, and no business leader should take heavy upfront investments if they don’t believe that the same policy is there two, three, or four years from now,” Tintelnot says. “Regardless of whether you’re in favor [of] or against these tariffs, you don’t want the President to just set tax rates arbitrarily, sort of by Executive Order all the time.”
Read More: What’s Next for Trump’s Tariff Agenda After Back-and-Forth Court Rulings
How have lawmakers, industry people, and experts reacted?
Though Tintelnot agrees that the escalated tariffs should help the domestic steel industry, he says it will be coinciding with struggles in other U.S. industries as a result of the increase.
“So, this is expected to raise the price of aluminum, which is important in inputs for downstream industries like the automotive industry, as well as construction, so there’s sort of a distributional conflict here,” Tintelnot warns. “Yes, it does help the domestic steel sector, but [it’s] hurting these other sectors of the economy, and they are already hard hit by other tariffs.”
Winegarden agrees, arguing that the tariffs are “working against themselves” and that consumers can expect prices to increase.
“[Trump is] making it more expensive for domestic auto manufacturers to produce here,” he says. “It’s an economically inconsistent, illiterate policy that seems to be hiding under the national security justifications.”
The USW (Unity and Strength for Workers, most commonly referred to as United Steelworkers)—a trade union of steelworkers across North America— said in a statement that the increase will have a negative impact on Canada’s industries and jobs.
“This isn’t trade policy—it’s a direct attack on Canadian industries and workers,” said Marty Warren, United Steelworkers national director for Canada. “Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers.”
Meanwhile, Bea Bruske, president of the Canadian Labour Congress, said that the plan to double tariffs is a “direct attack on Canadian workers and a reckless move” and warned that it “could shut Canadian steel and aluminum out of the U.S. market entirely and put thousands of good union jobs at risk.”
Speaking about the tariffs overall, Canada’s Prime Minister Mark Carney said on Friday that he intends to jumpstart and fast track national building projects throughout the country to respond to Trump’s trade war, “ensuring that the Canadian government becomes a catalyst for, not an impediment to, nation-building projects that will supercharge growth in communities, both large and small.”
Other international lawmakers, meanwhile, have voiced their disapproval of Trump’s tariffs escalations.
Australia’s Minister for Trade and Tourism, Don Farrell, said that Trump’s doubled charges were “unjustified and not the act of a friend.”