U.S. President Donald Trump has signed an executive proclamation doubling tariffs on imported steel and aluminium from 25% to 50%, effective June 4, 2025. Citing national security threats and unfair pricing by foreign nations, Trump’s policy is designed to protect American industries but is already sending shockwaves across global markets. The move affects consumer goods, construction, automobiles, and grocery prices. India and the European Union have expressed strong objections, and metal stocks worldwide have dipped sharply. While the UK is temporarily spared due to a bilateral trade deal, other nations now face steep barriers. Industry leaders offer mixed reactions, with some praising the protectionism and others warning of inflation and global instability. Trump’s decision reignites debates around the effectiveness of tariffs, with studies offering conflicting outcomes. Will this move secure American jobs and revive manufacturing, or lead to a wider economic backlash? Stay tuned for comprehensive updates only on Democratic News TV.
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Trump tariffs 2025,
steel tariff hike,
aluminium import tax,
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construction cost surge,
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KEYWORDS:
Trump tariffs 2025,
steel tariff hike,
aluminium import tax,
Section 232,
US trade war,
global steel prices,
metal import duties,
UK steel exemption,
auto industry costs,
inflation risk US,
construction cost surge,
canned food price hike,
Indian metal exports,
EU tariff response,
national security trade,
aluminium packaging,
Trump trade proclamation,
steel price in USA,
WTO trade dispute,
US manufacturing boost
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NewsTranscript
00:00Welcome viewers
00:29I'm Sheebnath and you're watching Democratic News TV.
00:34Today's top story is a game changer in global trade.
00:39In a stunning escalation, US President Donald Trump has doubled tariffs on imported steel and aluminium to a whopping 50%, effective 4th June.
00:49The move, framed as a national security measure, is already shaking markets and rattling global trade partners.
00:57Stay with us as we unpack the impacts, reactions and deeper implications of this bold economic strike.
01:06In a move poised to redefine global trade dynamics, US President Donald Trump has signed an executive proclamation that doubles existing tariffs on imported steel and aluminium from 25% to 50%, effective from 4th June 2025.
01:23The dramatic hike, announced as part of Trump's renewed America First economic policy, is being touted by the administration as essential to safeguarding national security and restoring domestic industry competitiveness.
01:39Previously, steel and aluminium imports into the US faced a 25% tariff, which itself was a revival of the Trampera section to 30 to trade policy initiated in 2018.
01:52The new order marks a significant intensification.
01:57According to the proclamation, the United Kingdom will be exempt, for now, thanks to a recent trade agreement, although even this preferential treatment could change by 9 July depending on compliance with ongoing trade negotiations.
02:12Trump justified the decision by citing threats posed by foreign nations offloading cheap, excess steel and aluminium, which, he argued, undermines US national security and industrial stability.
02:27He referenced new data from Commerce Secretary Howard Lutnik that revealed urgent vulnerabilities in the domestic metal sectors.
02:35The implications are far-reaching.
02:39Steel and aluminium are not limited to industrial machinery, they are present in everyday goods from soup cans to smartphones, refrigerators to automobiles.
02:50The construction, automotive, food packaging and even retail sectors could see cascading price hikes as a result.
02:57Steel prices have already surged by 16% since Trump returned to office in January 2025 and analysts predict this move could push prices beyond $1180 per metric ton in the US, significantly higher than prices in Europe $690 and China $392.
03:20This pricing differential is likely to hurt companies reliant on imported raw materials.
03:27Automakers, in particular, operate in global supply chains and the tariff hike may increase not just manufacturing costs but also repair and maintenance costs for consumers.
03:39Even grocery items like canned tuna or soup are likely to become more expensive as the metals used in packaging face higher import duties.
03:50Add to this the hidden costs such as the higher price of store shelves or transportation equipment made with steel and aluminium and American consumers may soon feel the pinch across the board.
04:03Industry responses have been mixed.
04:05While some metal producers welcomed the protectionist move, others have called for a more balanced approach.
04:13David McCall, President of the United Steelworkers Union acknowledged the utility of tariffs but stressed the need for broader reforms.
04:23Tariffs alone are on a panic here.
04:26We need systemic fixes and cooperation with allies like Canada.
04:30Matt Menon of the Aluminium Association echoed this sentiment, adding,
04:37Strategic tariffs can be useful but we also need consistent policy and global partnerships.
04:43Notably, while domestic production saw short-term growth under the earlier Trump tariffs, such as an 80% capacity utilization in 2021, output has since fallen.
04:54Aluminium capacity utilization, for example, declined from 61% in 2019 to 55% in 2023 due in part to loopholes and exemptions that diluted the impact of earlier tariffs.
05:11India, one of the key exporters to the US is already feeling the tremors.
05:18Indian metal stocks such as Hindalco, Nalco, Sale and JSW Steel dropped up to 2.5% following Trump's announcement.
05:27With over $4.5 billion in annual exports of iron, steel and aluminium products to the US, India's competitiveness in this market is now under serious threat.
05:41New Delhi has raised the issue at the World Trade Organization and may pursue retaliatory action.
05:48The European Union also expressed strong disappointment, warning that the decision adds further uncertainty to the global economy and could trigger countermeasures.
06:00Trump's order invokes Section 232 of the Trade Expansion Act of 1962, which permits the President to impose import restrictions if goods threaten national security.
06:11He emphasized that the US must not become reliant on foreign sources for metals critical to defense and infrastructure.
06:21To prevent import fraud, the new policy includes strict reporting requirements for steel and aluminium content.
06:29Violators could face fines or lose import privileges entirely.
06:33The proclamation also clarifies that only the steel and aluminium content of imported products will be affected by the 50% duty with other components subject to regular tariffs.
06:47Supporters of Trump's policy cite multiple studies suggesting that tariffs have had a positive economic impact.
06:54A 2024 study claimed the tariffs spurred significant reshing and job creation, while a 2023 US International Trade Commission report found that tariffs reduced Chinese imports and boosted domestic manufacturing.
07:11The Economic Policy Institute further stated that Trumpera tariffs showed no lasting inflationary effects.
07:18Even former Biden Treasury Secretary Janet Yellen downplayed consumer concerns, asserting that price impacts were negligible.
07:28One particularly optimistic economic model predicted that a global 10% tariff regime could add $728 billion to the US economy and create 2.8 million jobs.
07:40While domestic producers might benefit in the short term, the long-term consequences of heightened trade tensions remain uncertain.
07:50International backlash, increased consumer costs and potential retaliatory tariffs could offset any domestic gains.
07:59Moreover, Trump's strategy will face its ultimate test in the courts of public opinion and future economic data.
08:06Will this bold play fortify American manufacturing or merely ignite a global trade war?
08:15One thing is clear, President Trump has reignited a critical debate over how best to protect American industries in an interconnected world.
08:24That's all for tonight on Democratic News TV.
08:27I'm Sheeb Naath and we've just taken you through a defining moment in US trade history.
08:34As steel and aluminium tariffs double to 50%, ripple effects are being felt across industries and continents.
08:42With global markets bracing for impact and allies contemplating their next moves, the world watches closely.
08:49Stay informed, stay aware and join us tomorrow for more in-depth analysis on the issues shaping our world.
08:59Take care. Goodbye.
09:01Bye.
09:02Bye.