The U.S. has doubled tariffs on most imported steel (to 50%) and aluminum effective immediately, escalating President Trump’s trade war just as allies face a deadline to submit their “best offers” to avoid even steeper “Liberation Day” tariffs in July.
The surprise hike—announced last week and enacted Wednesday—exempts only the UK, which secured a temporary reprieve by agreeing to a preliminary trade deal. Major suppliers like Canada (#1 steel exporter to the U.S.) and Mexico (#3) will bear the brunt, with Canada’s aluminum exports (half of U.S. imports) hit hardest. Prices for aluminum have already more than doubled this year, though import volumes may stay stable due to limited domestic production capacity.
Simultaneously, the White House pressured trading partners to submit proposals by Wednesday to avoid July’s broader tariffs, which could raise rates beyond the current 10% baseline. The U.S. Trade Representative’s demands include:
- Quotas or tariff reductions on U.S. agricultural/industrial goods
- Commitments on digital trade and economic security
- Country-specific concessions
Only the UK’s non-binding framework deal has been finalized so far. Canada called talks “intensive,” while other nations await clarity on post-July rates.