payam Javan: President Donald Trump’s decision to impose 50 percent tariffs on steel and aluminum, effective from midnight on June 4, 2025, follows his announcement at a U.S. Steel facility near Pittsburgh. The executive order, signed on Monday, doubles the previous 25 percent tariff rate to bolster domestic production and counter foreign countries, particularly China, dumping low-priced steel and aluminum in the U.S. market. The move has sparked a surge in steel stocks, with Cleveland-Cliffs rising 23 percent and Steel Dynamics and Nucor each gaining 10 percent. The American Iron and Steel Institute praised the tariffs, citing the need to protect U.S. producers from the global steel overcapacity led by China, which exported 118 million metric tons in 2024, surpassing total North American production.

However, the tariff hike raises concerns about increased costs for U.S. industries reliant on steel and aluminum, such as automakers, appliance manufacturers, and construction. The Aluminum Association expressed caution, noting that tariffs alone won’t boost production without reliable, low-cost electricity and consistent trade policies. Canada, the largest supplier of these metals to the U.S., faces significant disruption, with industry leaders urging Ottawa to align with U.S. and Mexican trade policies to counter Chinese dumping. The tariffs are expected to encourage reshoring, with a 2025 U.S. Reshoring Survey indicating that a 15 percent universal tariff increase could prompt manufacturers to bring back 23 percent of imports, potentially reshaping American manufacturing.