United States Doubles Tariffs on Steel and Aluminum Imports to 50% Citing National Security Reasons

The United States government has taken a decisive new step in its policy of protecting domestic industry, announcing the doubling of tariffs on most steel and aluminum imports. The measure, formalized through a Presidential Proclamation issued this Tuesday, establishes a increase in the tariff rate from 25% to 50% ad valorem for these products and their derivatives. This new trade barrier will be effective starting at midnight tonight, June 4, 2025.

The justification given by the White House focuses on the National security, a recurring argument since these policies were initiated in 2018 under Section 232 of the Trade Expansion Act of 1962. According to the text of the proclamation, the Secretary of Commerce, after ongoing monitoring, has advised the President that the quantities and circumstances under which these metals are imported continue to pose a threat to homeland security.

The Administration believes that, while the previous 25% tariffs have provided “critical support to prices in the U.S. market,” they have not been sufficient for domestic steel and aluminum industries to “develop and maintain the rates of production capacity utilization necessary for the sustained health of the industries and for projected national defense needs.” This new increase aims toMore effectively counter foreign countries that continue to dump surplus, low-priced steel and aluminum into the U.S. market and thereby undermine the competitiveness of the U.S. steel and aluminum industries«.

Context of Previous Measures and Notable Exceptions

This is not the first time these tariffs have been adjusted. Initial tariffs were imposed in March 2018 through Proclamations 9704 and 9705. These tariffs were subsequently extended to derivative products in January 2020 (Proclamation 9980). More recently, in February 2025 (Proclamations 10895 and 10896), a 25% tariff was consolidated for most countries. The current decision, therefore, represents a significant escalation of this protectionist policy.

A highlight of the new proclamation is the differentiated treatment for the United KingdomUnder the US-UK Economic Prosperity Deal (EPD) of May 8, 2025, British steel and aluminum imports They will maintain the 25% tariff ad valoremHowever, the proclamation warns that from July 9, 2025, the Secretary of Commerce may adjust these rates or set import quotas for UK steel and aluminum, or even raise them to 50%, if he determines that the country has not complied with relevant aspects of the EPD.

The proclamation also specifies that the new 50% tariff will apply exclusively to the steel and aluminum content of imported goods, while non-metallic content will be subject to other applicable tariffs. Customs and Border Protection (CBP) is instructed to issue guidelines to ensure strict compliance with declarations of these metal contents, warning of "severe consequences" for importers who submit incorrect declarations, including "significant monetary penalties, loss of import privileges, and criminal liability."

Furthermore, it is established that Drawback will not be allowed. (refund of duties paid on imported goods that are then exported) for the tariffs imposed by this new measure. The Secretary of Commerce will continue to monitor imports and advise the President on the need for future actions or modifications.