President Donald Trump imposed sweeping 25% tariffs on all steel and aluminum imported into the United States Wednesday, a policy aimed at leveling the playing field for US manufacturing but a move that threatens to drive up prices on a broad range of consumer and industrial goods for Americans.
It’s the latest salvo in Trump’s multifaceted tariff plan aimed at correcting perceived trade imbalances and reigniting domestic industry. But it risks igniting a global trade war. The European Union, hit for the first time by higher US tariffs since Trump returned to the White House, retaliated within hours with countermeasures on US goods exports. And later Wednesday, Canada announced over $20 billion in retaliatory measures as well.
The tariffs on steel and aluminum mark the first time in Trump’s second term that a set of tariffs has been applied to all countries.
Imposing steel and aluminum tariffs poses a risky bet: Although it could give America’s steel and aluminum industries a boost, it will raise prices on a key ingredient for American manufacturers, which could be passed on to consumers. The costs could outweigh the benefit.
That’s what happened in Trump’s first term: Although Trump’s 2018 metals tariffs expanded US production modestly, it sent costs rising for cars, tools and machines and shrank those industries’ output by more than $3 billion in 2021, the International Trade Commission found in a 2023 analysis.
