Overview

• The president announced an immediate increase in steel import duties from 25% to 50% at a US Steel plant in Pennsylvania to strengthen the domestic industry.
• The administration is using Section 232 of the Trade Expansion Act to justify higher levies on national security grounds.
• US steel prices have risen nearly 16% since initial 2018 tariffs, and last year’s imports totaled $31.3 billion with Canada supplying $7.6 billion.
• Critics warn that the tariff hike could drive up costs for downstream sectors such as housing, automotive and construction.
• Earlier 25% steel tariffs triggered retaliatory measures from Canada and initially from the EU before its levies were rescinded, underscoring the risk of renewed trade disputes.