Trump signs order: 50% tariff hike on imported steel, aluminium takes immediate effect - India Travel Times

WASHINGTON, June 4: US President Donald Trump on Wednesday signed the executive order doubling tariffs on imported steel and aluminium to 50 per cent. Now it is official, the new tariff would take effect at midnight.

It is likely to raise the costs of everything like housing, cars and household items. However, local steel makers are cheerful as they made huge gains in share prices following the announcement on May 30.

America imported 26.2 million metric tons of steel and 5.4 million metric tons of aluminum last year, Canada topped the list. Last year India’s steel and aluminium exports to the US totaled $4.56 billion.

Trump said the order, which also covers derivative products, is intended to protect America’s national security and industries. He said the low prices of imports is threatening US industry.

Trump invoked Section 232 of the Trade Expansion Act of 1962, which allows the President to impose tariffs on imports that threaten national security.

“In my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States,” Trump said.

During a visit to a US steel mill in Pittsburgh on May 30, he had announced he was raising the tariff ro 50 %. He told the workers, the previous 25% tariff was not enough to deter foreign competition. He said: “At 25 percent, they can sort of get over that fence. At 50 percent, they can no longer get over the fence.”

The existing 25 per cent tariff on steel and aluminium was implemented in March. Earlier, a 50 per cent tariff imposed on Canadian steel was shelved. This time the exemption is only for the UK.

The move is likely to disrupt global trade relations as well.

Domestically, automobile manufacture, sports equipment, beer and soda cans, Canned goods and packaged grocery items, household appliances/supplies and building materials will cost more.

Impact on global trade

The tariff hike has received international backlash. The European Union has warned of potential retaliation. Mexican Economy Minister Marcelo Ebrard said, “It makes no sense.” The US exports more steel to Mexico than it imports, he said.

The latest tariff increase will also strain ongoing trade talks.

The World Trade Organization (WTO) has received formal complaints from multiple countries, including India, challenging the legality of the tariffs. Trump’s decision to double tariffs on steel and aluminium is seen as a return to his protectionist trade policies of his first term.