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U.S. Doubles Tariffs on Steel and Aluminium, Shaking Global Markets

Metals and Mining

Business Honor
03 June, 2025

Rising metal prices, global trade tensions, and investor fears reshape industrial landscape.

America has indicated that it will increase tariffs on foreign-imported steel and aluminum by 25% to 50%. This move has caused prices to surge and shares of international steel companies to decline sharply. The new tariffs, which will start on June 4, are part of a larger trade war, particularly with China, amid fresh allegations of tariff infringements.

The US is the largest global importer of steel outside the European Union, importing in excess of 26 million tons in 2024 alone. Experts within the industry indicate that these increased tariffs are likely to result in increased costs for producers and potentially diminish industrial activity within the country.

While the price of aluminum increased by 54%, the price of steel in the US spiked by 7.4%.

Copper prices also went up based on speculation that the US could include this metal used in construction and electrical industries in the tariffs.

The news was greeted with open arms by US aluminium manufacturers, who claim the tariffs will shield the local industry from low-cost foreign competitors. The American Primary Aluminum Association's president, Mark Duffy, said foreign subsidization has long damaged the US aluminium sector.

But the decision has raised alarm among foreign steelmakers. The biggest steel producers in Vietnam also saw a fall, and South Korean steelmakers POSCO and Hyundai Steel saw losses of about 3%. South Korea is a major steel exporter to the US, and Seoul is asking for exemptions in current trade negotiations.

However, hope remains that talks could normalize the tariffs. South Korea has consented to develop a trade package within a month, but political uncertainty is hindering progress.

At the same time, companies such as Hyundai Steel are making new investments in US factories, preparing for the long-term effects of these tariffs.