Trump increases tariff on steel and aluminum to 50%
What's the story
United States President Donald Trump has signed an executive order doubling tariffs on most steel and aluminum imports to 50%.
The move, which comes into effect immediately, is the second such increase since March.
The tariffs were previously set at 25% since 2018 under Section 232 of the Trade Expansion Act.
According to the White House, Trump is taking action to protect "America's critical steel and aluminum industries, which have been harmed by unfair trade practices and global excess capacity."
UK exemption
UK exempted from tariff hike
However, the United Kingdom has been exempted from this hike due to a bilateral trade agreement signed last month.
Under the agreement, the UK will maintain its current tariff rate of 25% with an option for adjustment starting July 9 based on compliance with the agreed trade framework.
This exemption gives both countries time to finalize new levies or quotas by a July 9 deadline.
Tariff rationale
Tariff hike necessary to protect vital US industries, says Trump
President Trump has justified this tariff hike as a necessary measure to protect vital US industries.
He announced the decision during a recent visit to US Steel's Mon Valley Works-Irvin Plant near Pittsburgh, where he hailed it as a "decisive step" in securing the future of American steel.
The president also cited a proposed partnership between US Steel and Japan's Nippon Steel as proof of renewed confidence in domestic markets.
Economic concerns
Concerns of retaliation from trade partners
The tariff hike has raised concerns of possible retaliation from trade partners and could increase costs for American manufacturers and consumers.
Economists warn that this move could have far-reaching effects on supply chains across industries like automotive, electronics, and food packaging.
Even companies using domestically produced metals may see price hikes as US suppliers capitalize on reduced foreign competition.