Trump doubles tariffs on metals to 50%

U.S. steel and aluminum prices surged after President Donald Trump announced plans to double tariffs on imported metals to 50%, intensifying the global trade war. The decision, unveiled late Friday just hours after Trump accused China of violating an agreement to mutually roll back tariffs and trade restrictions for critical minerals, is set to take effect.

The move led to an immediate market reaction. Aluminum prices skyrocketed by 54%, while U.S. hot‑rolled coil steel prices jumped about 7.5%. The dramatic increase in tariffs is expected to benefit domestic producers who have long complained about a flood of cheaper imports. Shares of U.S. aluminum companies, including those operating domestic smelters, surged as investors anticipated higher pricing power, while steel manufacturers such as Cleveland‑Cliffs saw their stocks climb as much as 24%, with Steel Dynamics and Nucor also recording gains of over 10%.

However, the tariff hike has met with mixed reactions. Asian and European firms reacted negatively, with companies like Germany’s Salzgitter warning that Trump’s policy could deal a severe blow to European steel production. Global markets have been rattled by the risk of escalating trade tensions, especially since the U.S. remains the world’s largest steel importer outside the European Union, having imported more than 26 million tons in 2024 according to the Department of Commerce.

Industry experts have expressed concerns about the broader economic implications, noting that such steep tariffs could raise input costs for manufacturers in sectors ranging from automotive and construction to durable goods. The increased costs may ultimately lead to higher consumer prices, dampened industrial activity, and potential job losses. Some analysts have also questioned whether the tariffs, given the administration’s history of policy reversals, will be implemented as announced, adding to prevailing market uncertainty.