Trump’s 50% steel & aluminum tariffs take effect, stirring tensions in Europe

June 04, 2025 (MLN): U.S. tariffs entered the spotlight once again in Europe on Wednesday as U.S. President Donald Trump’s 50% levy on steel and aluminum imports to the U.S. came into effect.

"This was signed by Trump on Tuesday, The order doubles tariffs from 25% to 50% on all metal imports to the U.S.The president stated that the move will protect the U.S.

steel industry amid a flood of cheaper foreign steel imports and weaker global demand.

Canada and Mexico are the biggest exporters of steel to the U.S., with other major sources including Brazil and South Korea, as per CNBC.

European steel exporters to the U.S., including those in Germany, Italy, Sweden, and the Netherlands, will be hard hit by the new 50% levy.

The U.K. was granted a temporary reprieve, with a 25% tariff remaining in place while details of Britain’s recently signed trade deal with the U.S. are worked out.

Trump stated while signing the steel tariffs order on Tuesday that the U.K. warranted “different treatment” to its European peers due to the “Economic Prosperity Deal” inked on May 8.

The 25% tariff is expected to be removed as part of the trade deal.

However, Trump warned that it could even increase to 50% “on or after July 9” if the White House determines that the United Kingdom has not complied with relevant aspects of the EPD.

The U.S. accounts for 7% of the U.K.’s total steel exports, with the trade worth £370 million ($500m) in 2024, according to UKSteel.

The trade body’s Director-General Gareth Stace on Tuesday said that the U.K.’s exemption from the 50% duty was “a welcome pause,” but urged London and Washington to turn their trade deal into reality to remove the tariffs completely.

“Continued 25% tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike,” he said in a statement.

“However, uncertainty remains over timings and final tariff rates,” he added.

“Now U.S. customers will be dubious over whether they should even risk making U.K. orders,” he warned, noting that the levies come at “an already crushing time for our steel industry, with global oversupply and weak demand.”

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