Trump's Tariff Tango: Steel and Aluminum Levies Rise

In a significant trade escalation, the United States will double tariffs on imported steel and aluminum to 50% starting Wednesday. President Donald Trump is leveraging these increases to press trading partners into delivering their "best offer" as they negotiate to avoid further tariffs on other imports from taking effect in July.

The tariff increase, announced by a late-night executive proclamation, excludes Britain due to a provisional trade agreement amid broader tariff pauses. Secretary Kevin Hassett emphasized the need for higher tariffs following data analyses that suggested more aggressive trade measures were necessary.

Canada and Mexico, leading exporters of steel to the U.S., are heavily impacted by these levies. The rise in tariffs has disrupted markets, especially aluminum prices, and Canada is in active negotiations to counter the punitive trade measures. The U.S. administration expects to shape trade dialogues with more countries leveraging their economic interests against looming tariff increases.

(With inputs from agencies.)