Trump Doubles Steel Tariffs to 50%, Aiming to Bolster U.S. Industry Despite Economic Risks
One of America’s oldest industries is getting a major boost from President Donald Trump’s latest move on trade — though it may come at the expense of broader economic growth.
Trump signed an executive order doubling steel import tariffs from 25% to 50%, a significant escalation of the duties first imposed in 2018. The new rate, which also applies to aluminum products, took effect at midnight Wednesday. Trump had previewed the move at a rally in Pennsylvania, touting it as a way to “further secure the steel industry in the United States.”
“These tariffs will raise the cost of foreign steel and protect American jobs,” he said.
The new duties are implemented under trade authorities that remain intact despite recent court rulings limiting presidential power over certain trade actions. As such, the steel and auto tariffs Trump imposed earlier remain unaffected.
U.S. steelmakers welcomed the decision, breaking from the general trend of business opposition to tariffs. “American-made steel is at the heart of President Trump’s plan to revitalize domestic manufacturing,” said the Steel Manufacturers Association in a statement praising the 50% tariff.
Investors reacted swiftly: shares in major American steel firms surged Monday as domestic steel and aluminum prices jumped.
The U.S. steel industry currently employs about 86,000 workers — a far cry from the 500,000 jobs it supported after World War II. Although employment has stabilized in recent years, much of the long-term decline is due to technological advances. New production methods, such as electric arc furnaces, require far fewer workers than traditional blast furnaces. In the early 1980s, it took about 10 man-hours to produce one ton of steel; today, it can be done in just one.
“The way we make steel in the U.S. has changed a lot,” said Ken Kolb, a sociologist at Furman University. “You’re not going to see half a million steel jobs come back — it simply doesn’t take that many people anymore.”
Kolb estimates that even under ideal conditions, the tariff hike might bring 15,000 new jobs — but warns the broader economic impact could cancel out those gains. Industries that rely heavily on steel and aluminum, like automotive manufacturing, construction, and solar panel production, are likely to see higher costs.
“When steel prices go up, companies tend to cut back on investment,” Kolb said. “That affects jobs down the supply chain.”
Indeed, research on Trump’s 2018 steel tariffs found they created roughly 1,000 direct jobs — but caused as many as 75,000 job losses in downstream industries due to higher material costs and reduced competitiveness.
Josh Spoores, head of Steel Americas Analysis at consultancy CRU Group, said that while the tariff hike could lead to some near-term capacity increases, the long-term impact is uncertain. “Building a new steel mill takes at least two years,” he noted, cautioning that the inconsistency of tariff policy makes planning difficult.
Even within organized labor, support for the move has been mixed. The United Steelworkers union offered only cautious approval, stressing the need for broader trade reform and international cooperation.
“Tariffs can be a useful tool, but they must be part of a broader strategy,” the union said, urging collaboration with allies like Canada to target unfair trade practices and global overcapacity.
Tensions also persist around Trump’s evolving stance on U.S. Steel’s proposed partnership with Japan’s Nippon Steel — a deal he once opposed but now claims could “create” 70,000 jobs. At the Pennsylvania rally, he promised “a lot of money coming your way” to cheering supporters.
But the union voiced skepticism about the arrangement, noting it had not been involved in discussions with U.S. Steel, Nippon, or the Trump administration.
“Our main concern remains the impact of this merger on national security, our members, and the communities we live and work in,” the United Steelworkers said in a Friday statement.
