WASHINGTON — A fresh wave of tension has gripped global trade after former U.S. President Donald Trump signed an executive order on Wednesday to double tariffs on imported steel and aluminium, bringing them to a punishing 50%.
The move marks a sharp escalation in his long-standing effort to protect American industry, and arrives amid an increasingly nationalist tone in his re-election campaign.
Trump told cheering supporters at a rally in Pennsylvania, “Nobody’s going to be able to steal your industry. At 50%, they can no longer get over the fence.”
But for many manufacturers and trading partners, the new duties are no celebration. They’re a crisis.
Manufacturing Warnings and Worker Worries
Rick Huether, chief executive of Independent Can Company in Maryland, has already seen the cost. His business imports steel from Europe to make decorative tins and food packaging.
“There’s a lot of chaos,” he said. “We were hoping this was just another tactic. But now, we’re looking at real damage.”
Huether said he’d already paused investments and raised prices after earlier tariff hikes this year. The latest blow, he warned, could drive customers toward cheaper, non-metal alternatives like plastic and paper.
His is not the only voice of concern. Chad Bartusek, who runs supply chain operations for a small steel tool manufacturer in Illinois, woke up to the news on Saturday with disbelief.
“I looked at the news and my jaw dropped,” he said. His company imports specialised Austrian-made steel. “We expected to pay $72,000 in tariffs. Now it’s closer to $145,000.”
The firm has already raised prices by up to 14%. Orders are slowing. Hours are being cut.
“It’s one punch after the other,” Bartusek said. “Hopefully, this settles down quickly.”
Blowback from Allies
While the U.K. was granted partial relief its duties remain at 25% others weren’t so lucky.
Canada, Mexico, Brazil, and South Korea, all major metal exporters to the U.S., are now bracing for economic fallout and potential retaliation.
In Europe, the European Commission confirmed that talks were ongoing but tense. “We’re negotiating hard to try and make good deals,” said Olof Gill, a spokesperson for the Commission. “We really hope that the Americans will roll back on this latest tariff threat.”
Gareth Stace, director general of UK Steel, warned that the March tariffs had already hit exporters hard. “The introduction of 50% tariffs immediately puts the shutters up,” he told the media. “Most of our orders, if not all of them, will now be cancelled.”
UK steel exports to the U.S. account for around 7% of total volume not huge, but significant enough to cause pain.
Unclear Gains at Home
The U.S. steel industry has long been a symbol of Trump’s economic nationalism. In his first term, he imposed similar tariffs, citing national security under a Cold War-era trade law.
But economists have questioned whether the strategy is paying off.
The American Iron and Steel Institute says domestic steel production has remained largely flat. Imports briefly fell by 17% in April, but the overall impact remains uncertain.
A 2020 study found the first round of tariffs created about 1,000 steel jobs but cost the broader economy an estimated 75,000 jobs, especially in sectors like construction, cars, and machinery.
Erica York, vice president of federal tax policy at the Tax Foundation, said the latest measures could be even more damaging.
“Tariffs on steel and aluminium raise costs for a huge number of U.S. industries,” she said. “It’s a very costly way to protect a relatively small number of jobs.”
Political Gamble or Long-Term Policy?
Trump’s comments at the rally left little doubt about his intentions. “At 25%, they can get over that fence,” he said. “At 50%, they can’t.”
Still, some wonder whether this is part of a broader strategy or a bargaining chip.
“Always the question with Mr Trump is, is this a tactic or is this a long-term plan?” said Huether, the Maryland business owner.
As American voters head into another election cycle, one thing is clear: Trump’s trade war is back. And this time, the stakes are even higher for the U.S., for its allies, and for the fragile global economy that links them.
