U.S. Doubles Steel and Aluminum Tariffs to 50%, Sparking Global Backlash and Economic Concerns

On June 4, the United States raised import tariffs on steel and aluminum from 25% to 50%, intensifying global economic tensions and drawing widespread criticism from key trade partners and industry experts. This move has triggered immediate market reactions and prompted urgent discussions among affected countries and industries.

Following the announcement, steel stocks in Asian markets broadly declined. South Korea’s Ministry of Trade swiftly convened an emergency meeting with domestic industry leaders to assess the potential impact of the tariff hike on steel exports. According to the Korea Trade Association, 13.1% of South Korea’s steel exports in 2024 were destined for the U.S. market. The Ministry committed to closely monitoring the situation and working within existing bilateral consultation frameworks to minimize harm to local industries.

Canada, one of the primary suppliers of steel and aluminum to the U.S., which imported $147.3 billion worth of such products in 2024, expressed strong opposition. Marty Warren, National Director of the United Steelworkers Union of Canada, described the tariffs as a direct assault on Canadian industry and workers. Bea Bruske, President of the Canadian Labour Congress, warned that doubling tariffs threatens to exclude Canadian steel and aluminum entirely from the U.S. market and jeopardize thousands of jobs.

The European Union also condemned the decision, calling it a reckless escalation that adds uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic. The EU has prepared retaliatory measures in response to the tariff increase, with existing and additional countermeasures scheduled to take effect on July 14 if no mutually acceptable agreement is reached. Reinhard Rippler, Chairman of the German Steel Association, noted that the tariffs would burden Germany’s direct exports to the U.S. and cause traditional suppliers to shift their focus to the EU market, intensifying internal pressures within Europe.

Australian Prime Minister Anthony Albanese labeled the U.S. action “economic self-harm,” emphasizing that the tariffs would raise costs for American consumers. Meanwhile, the Indian Global Trade Research Initiative highlighted that India exported $4.56 billion worth of steel and aluminum products to the U.S. in fiscal year 2025, and that the tariff increase threatens the profitability of Indian manufacturers and exporters.

Critics argue that the tariffs contradict the stated goal of revitalizing American manufacturing. Since the initial 25% tariffs came into effect on March 12, analyses have shown significant unintended consequences. The Boston Consulting Group estimated that these tariffs increased U.S. import costs by $22 billion, with derivative products such as aircraft components facing an additional $29 billion in costs. Industries heavily reliant on metals—including construction equipment, beverage cans, and oil drilling—face steep cost pressures.

William Oplinger, CEO of Alcoa, one of America’s largest aluminum producers, cautioned that the tariffs could harm the very sectors they intend to protect, potentially causing the loss of 100,000 U.S. jobs, including 20,000 in aluminum production.

Economic experts also warn that the doubling of tariffs will further elevate steel prices, already high in the U.S., squeezing domestic industries such as automotive and construction that depend on these materials. The inconsistent tariff policy and its frequent changes have created uncertainty and substantial challenges for American companies, undercutting claims that tariffs will benefit the domestic steel sector.

Beyond industrial impacts, the tariffs are expected to affect consumers directly. Steel and aluminum are critical materials in food packaging, and higher tariffs could raise prices for products such as beer, soda, and canned goods. The U.S. Can Manufacturers Institute noted that declining domestic production of tin-coated steel sheets has increased reliance on imports. Following the tariff hikes, increased costs will likely be passed to consumers. Trade experts warn that millions of American households will bear the financial burden, and that rising raw material costs will ripple across multiple industries, undermining the policy’s goal of a long-term manufacturing recovery.

In sum, the U.S. decision to double steel and aluminum tariffs to 50% has prompted strong opposition from key trade partners, triggered urgent industry responses, and raised doubts about its effectiveness in supporting domestic manufacturing. The escalating trade tensions pose significant challenges for global markets and may have broad economic repercussions both in the U.S. and abroad.