U.S. Doubles Steel and Aluminum Tariffs Amid Trade Deal Push

The U.S. has doubled tariffs on most imported steel and aluminum to 50% as of Wednesday, escalating global trade tensions. President Donald Trump’s administration raised the previous 25% tariff, initially implemented in March, following a data review that suggested greater impact was needed. The new rate took effect at 12:01 a.m. Wednesday and applies to all countries except the UK, which recently reached a preliminary trade agreement with the U.S. and will maintain the 25% rate until at least July 9.

The tariff hike targets key U.S. trading partners, especially Canada and Mexico. Canada, the largest aluminum exporter to the U.S., is significantly affected, while Mexico, which imports more U.S. steel than it exports, is pushing for an exemption. Mexico’s Economy Minister Marcelo Ebrard criticized the tariffs as “unsustainable and unfair,” with an exemption request set for Friday.

The increased duties have already disrupted metal markets, particularly aluminum, which has seen price premiums more than double this year. Despite the surge, domestic production remains limited, so import volumes may hold steady unless rising costs dampen demand.

Coinciding with the tariff hike is the White House’s call for trade partners to submit their “best offers” to avoid further tariffs set to take effect in early July. Only the UK has reached a tentative deal so far. U.S. Trade Representative letters reportedly ask countries to propose tariff and quota plans, address non-tariff barriers, and outline digital trade and economic security commitments.

Japan, a major U.S. partner, has not received the letter but confirmed ongoing negotiations. As the July 8 deadline nears, the Trump administration is pushing for swift agreements to justify potential tariff relief.