In a significant move aimed at bolstering domestic industries and addressing perceived national security threats, President Donald J. Trump today issued a proclamation dramatically increasing tariffs on imported steel and aluminum articles and their derivatives.
Effective 12:01 a.m. Eastern Daylight Time on June 4, 2025, the ad valorem tariff rate on these goods will jump from 25 percent to 50 percent.
The proclamation, signed by President Trump, states that the increased tariffs are “necessary to adjust the imports of steel and aluminum articles and their derivative articles so that such imports will not threaten to impair the national security.”
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It asserts that the heightened tariffs will “more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries.”
This escalation follows previous actions by the administration. Investigations by the Secretary of Commerce in 2018 determined that imports of both steel and aluminum articles threatened to impair U.S. national security, leading to initial 25% tariffs on steel and 10% on aluminum in March 2018.
These tariffs were later expanded to include derivative articles in January 2020 and, more recently, were applied to imports from all countries in February 2025.
According to the proclamation, while previous tariffs provided “critical price support,” they “have not yet enabled these industries to develop and maintain the rates of capacity production utilization that are necessary for the industries’ sustained health and for projected national defense needs.” The new 50% tariff aims to provide “greater support” and “reduce or eliminate the national security threat.”
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Notably, the proclamation also addresses the recently established U.S.-UK Economic Prosperity Deal (EPD) of May 8, 2025. While the increased 50% tariff generally applies, steel and aluminum articles and their derivatives from the United Kingdom will continue to face a 25% ad valorem tariff for now.
However, the Secretary of Commerce retains the authority, starting July 9, 2025, to adjust these rates and implement import quotas consistent with the EPD, or to increase the tariff to 50% if the UK fails to comply with the deal’s relevant aspects.
Furthermore, the proclamation clarifies that only the steel content of articles in Chapter 73 of the Harmonized Tariff Schedule of the United States (HTSUS) and the aluminum content of articles in Chapter 76 will be subject to these new ad valorem duties.
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Non-aluminum and non-steel content will remain subject to other applicable tariffs, including those under Executive Order 14257 of April 2, 2025, which regulates imports to rectify trade deficits. U.S. Customs and Border Protection (CBP) is directed to issue strict compliance guidance for content declarations, with severe penalties for noncompliance.
The Secretary of Commerce is instructed to continue monitoring imports of these articles and derivative articles and to advise the President on any circumstances indicating a need for further action or a cessation of the tariffs. The proclamation also states that no drawback will be available with respect to these newly imposed duties, and CBP can take necessary measures to administer them.
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