Trump Announces Tariff Hike on Steel and Aluminium Imports

Strategic Insights -

US President Donald Trump has vowed to double tariffs on steel and aluminium imports to 50 per cent, citing a need to "even further secure the steel industry in the United States". The move, which will affect about $1 billion worth of Australian metal exports, has been met with criticism from Trade Minister Don Farrell, who described the tariffs as "unjustified and not the act of a friend".

The proposed tariff increase would target Australian steel and aluminium exports, which totaled $640 million and $440 million, respectively, last year. The cumulative trade of $1 billion is a small fraction of Australia's total exports of $660 billion in the past financial year.

Key Takeaways:

  • The US tariffs on steel and aluminium will be doubled to 50 per cent, affecting about $1 billion worth of Australian metal exports.
  • Trade Minister Don Farrell has described the tariffs as "unjustified and not the act of a friend".
  • Australia exported $640 million worth of steel and $440 million of aluminium to the US last year.
  • The US produced about three times more steel than it imported last year.
  • Trump has also announced that aluminium tariffs will be doubled to 50 per cent.
  • The accumulated $1 billion trade is a small fraction of Australia's total exports of $660 billion in the past financial year.
  • Trump has expressed frustration with China, accusing it of reneging on a tariff truce negotiated earlier this month.
  • Steel prices in the US have climbed 16 per cent since Trump became president in mid-January.
  • Nippon Steel will invest in US Steel under a proposed deal, despite initial opposition from Trump.

Statistics:

  • $1 billion: The cumulative trade value of Australian steel and aluminium exports to the US.
  • 50 per cent: The proposed tariff hike on steel and aluminium imports.
  • 16 per cent: The increase in steel prices in the US since Trump became president.
  • $640 million: The value of Australian steel exports to the US last year.
  • $440 million: The value of Australian aluminium exports to the US last year.
  • 660 billion: The total value of Australian exports in the past financial year.
  • 984: The cost of steel in the US in March 2025 (in US dollars per metric tonne).
  • 611: The cost of steel in China in March 2025 (in US dollars per metric tonne).
  • 1076: The cost of steel in Europe in March 2025 (in US dollars per metric tonne).

Sources:

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US President Donald Trump says he will double US tariffs on steel and aluminium imports to 50 per cent in a move that would affect about $1billion worth of Australian metal exports.

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Trade Minister Don Farrell said yesterday the tariffs were "unjustified and not the act of a friend".

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Australia exported $640 million worth of steel and $440 million of aluminium last year to the US.

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The US produced about three times more steel than it imported last year.

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Steel prices in the US have climbed 16 per cent since Trump became president in mid-January.

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In March 2025, steel cost $US984 ($1535) a metric tonne in the US, significantly more than the price in Europe ($1076) or China ($611), according to the US Commerce Department.

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The US Commerce Department reported the increase in steel prices in the US.