Trump’s 50% steel tariffs hit the world but UK spared full blow

In North Rhine-Westphalia, Duisburg, Germany, an employee is seen standing beside a blast furnace.

The focus was once again on U.S. tariffs in Europe on Wednesday as President Donald Trump’s decision to impose a 50% tariff on steel and aluminum imports to the U.S. took effect. The order, announced last week and signed by Trump on Tuesday, doubles tariffs from 25% to 50% on all metals imported into the U.S. Trump mentioned that this move aims to safeguard the U.S. steel industry from an influx of cheaper foreign steel imports and weakening global demand.

Major steel exporters to the U.S., such as Germany, Italy, Sweden, and the Netherlands, will be significantly impacted by the new 50% tariff. The U.K. received a temporary exemption, with a 25% tariff staying in place while details of the trade deal between the U.K. and the U.S. are being finalized.

Trump mentioned during the signing of the steel tariffs order that the U.K. would receive different treatment compared to other European countries due to the “Economic Prosperity Deal” signed on May 8. It is expected that the 25% tariff on the U.K. will be removed as part of the trade deal, but Trump warned that the levy could be increased to 50% “on or after July 9” if the U.K. fails to comply with relevant aspects of the deal.

The European Union expressed strong dissatisfaction with the 50% steel tariff, stating that it undermines their ongoing trade negotiations with the U.S. An EU spokesperson mentioned that the bloc is ready to implement countermeasures if a mutually acceptable solution is not reached.

Analysts predict that Trump’s tariffs will lead to higher U.S. steel prices, impacting industries like automakers and consumers purchasing canned goods. The impact in Europe is expected to vary, with some buyers and manufacturers potentially benefiting from lower prices as more steel is redirected to the region.