Trump's trade war: United States doubles steel, aluminium tariffs

The United States doubled steel and aluminum tariffs to 50 percent Wednesday as President Donald Trump intensified his global trade war.

Trump's sweeping tariffs on allies and adversaries alike – including levies on imported steel and autos – have strained US ties with trading partners and sparked a flurry of negotiations to avoid the duties.

Steel and aluminum were the first sectors affected, with a 25 percent surcharge that went into effect on March 12 in an attempt to encourage investment in the country. 

In a decree that came into effect at midnight Wednesday, Trump doubled those tariffs in order to “provide greater support to these industries and reduce or eliminate the threat to national security posed by imports of steel and aluminium products and their derivatives," the text reads.

In 2024, the United States imported about half of the steel and aluminium used in the country.

Canada is its main supplier of steel, followed by Brazil and Mexico, with products destined for other industries such as automotive and construction. Argentina is the sixth-largest supplier of aluminium.

Pressure is mounting after the Organisation for Economic Cooperation and Development (OECD), a 38-nation grouping of mostly developed countries, cut its global growth forecast on the back of Trump's levies.

Trade, consumption and investment have been affected by the tariffs, OECD chief economist Alvaro Pereira warned, stating that the US economy will see the biggest repercussions.

While some of Trump's most sweeping levies face legal challenges, they have been allowed to remain in place for now as an appeals process is ongoing.

The European Union has said it "strongly regrets" Trump's plan to raise metals tariffs, cautioning that it "undermines ongoing efforts to reach a negotiated solution" with the United States. The bloc added that it was ready to retaliate.

Canada, the largest supplier of steel and aluminium to the United States, called Trump's tariffs "illegal and unjustified.”

– TIMES/AFP