- President Trump announced plans to raise U.S. tariffs on imported steel and aluminum from 25% to 50%, effective June 4, 2025.
- Shares of Cleveland-Cliffs Inc., a major steelmaker, surged 26% following the announcement.
- The tariff increase has drawn criticism from international trade partners, raising concerns over economic security and potential retaliations.
President Donald Trump announced on May 30, 2025, that the U.S. would increase tariffs on imported steel and aluminum from 25% to 50%, effective June 4, reports Yahoo.
“Reciprocal tariff” strategy
Speaking at a rally near Pittsburgh, Trump emphasized that the tariff hike aims to bolster the U.S. steel industry and protect domestic jobs. He highlighted a $14.9 billion deal between Nippon Steel and U.S. Steel as a positive development for the sector.
The announcement led to a significant market reaction, with shares of Cleveland-Cliffs Inc., a major steelmaker, rising 26% after the market closed, reflecting investor confidence in the potential benefits of the tariff increase for domestic producers.
Internationally, the move has drawn criticism. The Canadian Chamber of Commerce condemned the tariff hike, stating it is detrimental to North American economic security. The European Commission also expressed strong regret over the decision, warning of potential retaliatory measures if no mutually acceptable agreement is reached by mid-July.
This policy shift continues President Trump’s “reciprocal tariff” strategy, introduced earlier in April 2025, aiming to address what he sees as unfair trade practices disadvantaging American manufacturers and workers. The strategy has increased trade tensions and market volatility.
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Source: Yahoo
