Trump Doubles Tariffs on Steel and Aluminum Amid Rising Trade Tensions with China and EU

The executive order announcing the tariff hike was published Tuesday and came into effect just after midnight Washington time (04:01 GMT Wednesday).

Trump justified the decision by stating, “We want to ensure that these imports do not threaten national security.”

The executive order stated:“While the existing tariffs have provided essential support to prices in the U.S. market, they have not enabled these industries to increase or maintain capacity utilization at levels sufficient to ensure long-term sustainability or to meet national defense requirements.”

UK Exempted as U.S. Escalates Tariffs and Trade Tensions with Europe

The United Kingdom was exempted from the tariff increase, with its rate remaining at 25%, to allow time for London and Washington to finalize a new trade agreement announced last month. This agreement is expected to eventually exempt the UK steel sector from tariffs.

The British government expressed “satisfaction” with the exemption and confirmed it will “continue to work” with the U.S. administration to ensure the agreement is implemented, according to a statement to AFP.

The UK Steel Association welcomed the suspension of higher tariffs on exports to the U.S. but urged both governments to “rapidly turn the May agreement into reality.”

U.S. President Donald Trump has doubled tariffs on steel and aluminum imports from 25% to 50%, declaring that it is “extremely difficult to reach an agreement” with Chinese President Xi Jinping,

Steel and aluminum were among the first sectors targeted by Trump’s tariff policy, which began with a 25% hike on March 12 to encourage domestic investment in U.S. industries.

These tariffs were later extended to the automotive industry, pharmaceuticals, and semiconductors—the latter being the only sector untouched by a recent court ruling that invalidated blanket tariff applications.

The increase comes as U.S. Trade Representative Jamieson Greer prepares to meet European Commissioner Maroš Šefčovič on the sidelines of the OECD summit concluding Wednesday.

Tensions are running high as Trump has threatened to impose 50% tariffs on European exports to the U.S., accusing the EU of bad-faith negotiation.

These tensions are mounting ahead of a July 9 deadline, marking the end of a 90-day moratorium on reciprocal tariffs.

White House spokesperson Karoline Leavitt confirmed Tuesday that “the U.S. trade representative has sent reminders to all partners about the looming deadline.”

Europe Vows to Respond Calmly

European officials have signaled readiness to respond if targeted by further U.S. tariff hikes.

On the sidelines of the OECD summit, Greer also met with his Vietnamese and Malaysian counterparts, while G7 trade representatives (Canada, France, Germany, Italy, Japan, the UK, and the U.S.) gathered ahead of the June 15–17 G7 Leaders’ Summit in the Canadian Rockies.

German Economy Minister Katharina Reiche warned Tuesday that “we must negotiate solutions quickly—time is running out.”

French Trade Minister Laurent Saint-Martin added, “We must remain calm and demonstrate that these tariff measures are not in anyone’s interest, starting with the U.S. economy itself.”

Economic Impact and Uncertainty

The OECD now expects a sharp slowdown in U.S. growth this year, projecting a rate of 1.6%, down from 2.4% before Trump entered office, largely due to the ongoing trade war.

Uncertainty continues to weigh on the global economy, especially after Trump last week accused China of violating a de-escalation agreement signed in mid-May in Geneva, threatening to reignite the trade war between the world’s two largest economies.

The White House confirmed on Tuesday that Trump hopes to speak with President Xi “perhaps this week.” However, Trump posted on his Truth Social platform Wednesday that while he “respects” Xi, it is “very difficult to reach an agreement” with him.

Reactions from North America

Before the tariff hike to 50%, Canada—the largest steel and aluminum exporter to the U.S.—condemned the move as “illegal and unjustified.”

Mexico’s Economy Minister Marcelo Ebrard said his country would formally request an exemption on Friday, calling the measures “absurd.” Roughly 80% of Mexican exports go to the United States.