Steel and aluminum tariffs reinstated globally

Summary

President Trump signed two proclamations on February 11, 2025, reinstating 25% tariffs on all steel imports and raising aluminum tariffs from 10% to 25% under Section 232 of the Trade Expansion Act of 1962. All prior exemptions granted to allies including the EU, Canada, Mexico, Australia, Japan, and South Korea were eliminated.

What happened

The proclamations ended every country-specific exclusion negotiated during Trump's first term, meaning close trading partners now face the same 25% rate as other nations. The changes took effect March 12, 2025. The tariff on steel was maintained at 25% while aluminum doubled. A June 3, 2025 proclamation raised the rates to 50% for most countries (the United Kingdom stayed at 25%), effective June 4, 2025.

Impact on the United States

Higher steel and aluminum prices directly raise costs for U.S. manufacturers of autos, appliances, machinery, and construction materials, contributing to downstream consumer price increases. American manufacturers importing these metals face higher input costs that cannot be immediately passed to consumers, squeezing margins.

Global ripple effects

Canada responded with 25% counter-tariffs, effective March 13, 2025, on C$29.8 billion of U.S. products, including C$12.6 billion in steel products and C$3 billion in aluminum products, reducing demand for U.S.-made goods in Canada.

Documented effects

1. Aug 2025John Deere announced ~$300 million in tariff-related costs on steel and aluminum inputs and laid off more than 200 workers at Illinois and Iowa plants in August 2025.[2]
2. Cox Automotive estimated the steel and aluminum tariffs would add $300 to $500 to the price of a vehicle, on top of the effect of the auto tariffs.[4]

Why this is rated significant

25% metals tariffs with no exemptions raised input costs across autos, construction, and appliances, a significant broad-based cost increase.

Corrections & updates [6]

Every change to a fact on this page after publication is logged here, newest first.

1. Sep 29, 2026CorrectedSource

   The John Deere effect was cited to the White House Section 232 fact sheet, which does not mention Deere; the CBS News article (s2) reports the ~$300 million tariff cost and the 200+ layoffs in Illinois and Iowa.[2]

2. Sep 29, 2026CorrectedDate

   The entry said the rates were raised to 50% "in May 2025". The proclamation raising steel and aluminum tariffs to 50% was signed June 3, 2025 and took effect June 4, 2025; U.K. steel and aluminum stayed at 25%.[3]

   + Show previous and current text- Hide previous and current text

   Previously

   The proclamations ended every country-specific exclusion negotiated during Trump's first term, meaning close trading partners now face the same 25% rate as other nations. The changes took effect March 12, 2025. The tariff on steel was maintained at 25% while aluminum doubled. In May 2025, the rates were further raised to 50% for most countries, effective June 4, 2025.

   Now

   The proclamations ended every country-specific exclusion negotiated during Trump's first term, meaning close trading partners now face the same 25% rate as other nations. The changes took effect March 12, 2025. The tariff on steel was maintained at 25% while aluminum doubled. A June 3, 2025 proclamation raised the rates to 50% for most countries (the United Kingdom stayed at 25%), effective June 4, 2025.

3. Sep 29, 2026CorrectedEffects

   An effect attributed a Moody's estimate ($30 billion hit to global automakers' profits) to a CBS News article that does not mention Moody's, and it concerned all tariffs, not the metals tariffs. It is replaced with a steel-specific figure CNBC reports: Cox Automotive estimated the steel and aluminum tariffs add $300 to $500 to vehicle prices.[4]

4. Sep 29, 2026CorrectedForeign linkback

   The linkback said Canada, the EU and others retaliated on "agricultural goods, motorcycles, and consumer products"; no cited source supports that for the metals tariffs (Canada's tariffs on orange juice, motorcycles etc. were its response to the separate fentanyl tariffs). Canada's Department of Finance documents its response to the steel and aluminum tariffs: 25% counter-tariffs from March 13, 2025 on C$29.8 billion of U.S. products, including C$12.6 billion of steel and C$3 billion of aluminum products. The EU reference is removed as unsourced.[5]

5. Sep 29, 2026ClarifiedSource

   The CBS News article's date was listed as Oct 1, 2025; the article was published Sept 9, 2025.[2]

6. Sep 29, 2026CorrectedCost estimate

   The booked figure and 10-year consumer burden were unsourced estimates. Both now use Tax Foundation's 10-year dynamic revenue estimate for the Section 232 metals tariffs ($213.4B), the same method used for the other durable tariffs; the booked amount is that yearly average pro-rated over the 566 days in effect. The text no longer describes a federal 'net gain', which contradicted the zero federal figures.

   Previously

   $20B booked; $220B broader 10-yr

   Now

   $33B booked; $213B broader 10-yr

Sources [5]