Europe threatens retaliation and Canada slams ‘economic self-harm’ as Trump promises to ‘secure’ US steel industry with dramatic Pittsburgh rally announcement
US to double tariffs on steel and aluminium imports to 50%, Trump says – President Donald Trump has announced the US will double its current tariff rate on steel and aluminium imports from 25% to 50%, starting on Wednesday.
Speaking at a rally in Pittsburgh, Pennsylvania on Friday, Trump said the move would help boost the local steel industry and national supply, while reducing reliance on China.
Trump also said that $14bn would be invested in the area’s steel production through a partnership between US Steel and Japan’s Nippon Steel, though he later told reporters he had yet to see or approve the final deal.
The announcement is the latest turn in Trump’s rollercoaster approach to tariffs since re-entering office in January.
‘Nobody’s getting over that fence’
In dramatic scenes at U.S. Steel’s Mon Valley Works in West Mifflin, Pennsylvania, Trump told cheering steelworkers he was delivering on his promise to protect American jobs.
We’re going to bring it from 25% to 50%, the tariffs on steel into the United States of America,” Trump announced to thunderous applause from US Steel employees.
At 25%, they can sort of get over that fence,” Trump said. “At 50%, they can no longer get over the fence.”
The president revealed that while he initially considered a 40% tariff, industry executives convinced him to go even higher: “They wanted a 50% tariff.”
Europe threatens countermeasures
The European Commission responded within hours with a stinging rebuke, warning of potential retaliation against American exports.
We strongly regret the announced increase of US tariffs on steel imports from 25% to 50%,” a European Commission spokesperson said. This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic.
The EU warned it is “prepared to impose countermeasures, including in response to the latest US tariff increase” if needed – raising the spectre of a full-blown transatlantic trade war.
Canada slams ‘act of economic self-harm’
Canada’s Chamber of Commerce quickly denounced the tariff hike as “antithetical to North American economic security,” while Australia’s centre-left government condemned the increase as “unjustified and not the act of a friend.
They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade,” Australian Trade Minister Don Farrell said in a statement.
Canada, which shipped $7.6 billion worth of iron and steel to the US last year as America’s top supplier, faces a devastating blow to its exports.
Truth Social victory lap
Trump couldn’t resist taking to his Truth Social platform to celebrate the announcement, posting: “It is my great honor to raise the Tariffs on steel and aluminum from 25% to 50%, effective Wednesday, June 4th.
Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!”
Wall Street surge
Markets reacted swiftly to the news, with shares of steelmaker Cleveland-Cliffs Inc surging 26% after the market close as investors bet the new levies will boost domestic producers’ profits.
The tariffs cover 289 product categories worth $147.3 billion in 2024 imports, including everything from stainless steel sinks and gas ranges to air conditioner coils, horseshoes, aluminum frying pans and steel door hinges.
Nippon Steel deal controversy
Trump used the Pittsburgh rally to champion his controversial reversal on the Nippon Steel-US Steel deal, which he had previously opposed during his campaign.
The president claimed Nippon has committed to keep U.S. Steel’s blast furnaces operating at full capacity for a minimum of a decade, with no layoffs and “no outsourcing whatsoever.
U.S. Steel workers will receive a $5,000 bonus as part of the agreement, Trump announced, though he avoided calling it a merger, instead describing it as a “partnership.
Union scepticism remains
The United Steelworkers union, which originally opposed the deal, expressed continued concerns about foreign ownership.
“Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” USW President David McCall said.
Consumer costs set to soar
Economics experts warn the tariff hike will send prices soaring for American consumers and businesses, with steel prices already up 16% since Trump took office in mid-January.
As of March 2025, steel cost $984 per metric tonne in the US – far more than the price in Europe ($690) or China ($392), according to the US Department of Commerce.
A Yale Budget Lab analysis found that even existing steel and aluminum tariffs would cost the average household $950 in lost purchasing power this year – a figure set to skyrocket with the doubling of rates.
Whiskey wars threatened
In an unexpected twist, America’s bourbon industry warned that EU retaliation could devastate US whiskey exports.
A 50% tariff on America’s native spirit will have a catastrophic outcome for the 3,000 small distilleries across the United States,” warned Chris Swonger, CEO of the Distilled Spirits Council.
Trade war escalates
The steel tariff bombshell comes amid Trump’s broader trade offensive, including threats of 25% tariffs on all Mexican and Canadian imports unless they take stronger border security actions by March 1.
Trump has also promised to announce reciprocal tariffs on all countries “very simply, it’s, if they charge us, we charge them” – potentially triggering the most dramatic reshaping of global trade in decades.
As the world braces for retaliation and counter-retaliation, one thing is clear: Trump’s America First trade war is only just beginning.
