President Donald Trump's 25% tariffs on steel and aluminum imports began Wednesday — a move that is likely to make building construction and car assembly more expensive.
The levies come as Trump doubles down on his second-term tariff agenda and applies to all imports of the two metals entering the US. The White House has introduced and walked back a series of measures against China, Mexico, and Canada in recent weeks, causing economic uncertainty in US markets.
On March 11, Trump threatened to up the Canadian steel and aluminum tariff to 50%, before dropping it back down to 25%.
While Trump reversed those further tariff hikes, American consumers are still likely to feel the 25% levy on metals.
Census Bureau data showed Canada, Mexico, and Brazil were the main suppliers of steel and iron imports to the US in 2024 by dollar value. Iron can be used to produce steel.
In 2024, Canada, the United Arab Emirates, and Mexico were the main countries behind US imports of aluminum and bauxite — a material used to create aluminum — by dollar value.
One of Trump's main goals early in his second term has been limiting foreign trade with an eye toward bolstering domestic industries. Many economists have said the brunt of tariffs could fall on American consumers.
With the new steel and aluminum tariffs, Americans can expect various consumer goods, like pipes and cooking utensils, to become more expensive because of lower supply, higher demand, and steeper import costs. The travel and construction industries are also likely to be affected.
Aluminum is primarily used to manufacture automobiles, airplanes, kitchen appliances, cans, and electrical transmission lines, per the US Geological Survey. Steel is also used in automobile production, as well as in the construction of bridges, buildings, and homes.
The metals tariffs follow new 10% tariffs that were implemented on China, which quickly retaliated with a 15% tariff on coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, and some vehicles. Additionally, the White House delayed a 25% tariff on Canada and Mexico after Trump made a deal with the nations' leaders on border-protection measures.
Trump's plan for metal tariffs also come after other big news in the steel industry. Japan's Nippon Steel announced last month that it would drop its nearly $15 billion acquisition bid for US Steel, ending a yearslong battle over American steel production. Nippon Steel said it would instead "invest heavily" in US Steel.
The president's new focus on metals tariffs shouldn't come as a surprise. During his first term in office, he imposed a 25% tariff on steel and a 10% tariff on aluminum. He later granted some duty-free exemptions to top trade partners such as Canada, Mexico, and Brazil. It's not clear whether he will do the same this time around.
The Trump administration did not immediately respond to a request for comment.
