June 06, 2025
President Trump Increases Tariffs on Steel and Aluminum
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On June 3, President Donald Trump issued a proclamation to increase duties on steel, aluminum, and their derivative products from 25% to 50%, effective June 4, 2025. The president invoked Section 232 of the Trade Expansion Act of 1962 to adjust the duties, citing concerns that the existing duty rates were not effectively mitigating the threat to national security. A White House Fact Sheet provides further background on the increased tariffs.
The proclamation also modifies the way in which tariffs apply to imported products containing steel and aluminum. Under the new approach, the 50% steel and aluminum tariffs apply to the steel and aluminum contents of a product, while the non-steel and non-aluminum content of that same product is subject to the “reciprocal” or “baseline” tariff rate—currently 10%. Previously, products that were subject to the steel and aluminum tariff were not subject to the “reciprocal” or “baseline” tariff. The additional 20% “fentanyl” or “trafficking” tariff on imports from China still applies to the full value of such products.
The United Kingdom (UK) is exempt from the increased steel and aluminum tariffs, with covered imports facing the preexisting 25% tariff due to the U.S.-UK Economic Prosperity Deal (EDP) signed on May 8, 2025. On or after July 9, the secretary of commerce has the authority to adjust the tariffs applied to UK steel and aluminum as well as institute import quotas consistent with the terms of the EPD.
The proclamation also modifies the way in which tariffs apply to imported products containing steel and aluminum. Under the new approach, the 50% steel and aluminum tariffs apply to the steel and aluminum contents of a product, while the non-steel and non-aluminum content of that same product is subject to the “reciprocal” or “baseline” tariff rate—currently 10%. Previously, products that were subject to the steel and aluminum tariff were not subject to the “reciprocal” or “baseline” tariff. The additional 20% “fentanyl” or “trafficking” tariff on imports from China still applies to the full value of such products.
The United Kingdom (UK) is exempt from the increased steel and aluminum tariffs, with covered imports facing the preexisting 25% tariff due to the U.S.-UK Economic Prosperity Deal (EDP) signed on May 8, 2025. On or after July 9, the secretary of commerce has the authority to adjust the tariffs applied to UK steel and aluminum as well as institute import quotas consistent with the terms of the EPD.