Higher US tariffs on steel imports come into effect from today

US President Donald Trump has signed the order for increasing tariffs on imports of steel and aluminum  to 50%. This time the US President did not defer the tariff hike. This tariff will come into force from today, 4^th June, 2025. The tariff has been increased from 25% to 50%.

Steel & metal stocks may again come under downward pressure today

The move will hurt China significantly. Cheaper steel imports from China had flooded the US in the past few years. Indian steel makers will also get hurt by the order. Steel and metal stocks in Indian markets may again come under downward pressure today.

In his previous term as President, Donald Trump, had imposed higher tariffs on steel in 2018. According to data from The Economist, at that time these higher tariffs resulted in creation of 1000 additional jobs in the steel industry of US. But it resulted in loss of around 75,000 jobs in other industries. This, because of increase in cost of production in these industries.

Tariffs that are being imposed by President Trump will result in increase in cost of production for US companies. This in turn may fuel up inflation while bringing a slowdown in economic demand.

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Source: US Department of Commerce