The United States has officially doubled its tariffs on imported steel and aluminum, sparking global concern as the deadline passed for trading partners to submit their “best offers” to avoid further sweeping levies. While American and European negotiators signaled progress in their ongoing trade dialogue, the new tariffs cast a shadow over talks aimed at preventing broader disruptions.
The increased duties—raised from 25% to 50%—took effect at midnight Wednesday. The move, a continuation of former President Donald Trump’s protectionist trade agenda, comes amid a 90-day window during which countries were invited to strike deals to escape a broader wave of "reciprocal" tariffs that could begin as early as July.
Despite the tariff escalation, U.S. Trade Representative Jamieson Greer and EU negotiator Maros Sefcovic described their latest meeting in Paris as productive. “We’re moving forward at speed,” said Sefcovic, noting that technical teams in Washington remain hard at work and that high-level talks will follow soon. Greer echoed the sentiment, citing "a genuine willingness by the EU" to find workable trade solutions.
Trump’s aggressive use of tariffs has roiled global markets and strained international relations. His administration argues that these tariffs are necessary to correct what he sees as long-standing trade imbalances and to revive American manufacturing. However, the Congressional Budget Office warned that the new duties could dampen U.S. economic growth.
Adding to global trade tensions, the EU is grappling with supply disruptions caused by China’s curbs on critical mineral exports. European car manufacturers, including BMW, are reporting impacts on supply chains, further complicating the economic landscape. Meanwhile, Trump criticized Chinese President Xi Jinping as “very difficult to deal with,” undercutting hopes for progress in U.S.-China trade relations.
Markets responded swiftly to the tariff hike, especially in the aluminum sector, where price premiums have more than doubled since the start of the year. The sharp increase, enacted through an executive order signed late Tuesday, excludes only the United Kingdom, which has reached a preliminary agreement with the U.S. during the 90-day negotiation period.
EU officials expressed disappointment over the tariff move, with Sefcovic arguing that both the U.S. and Europe face the same structural issue—overcapacity in steel production—and should address it collaboratively rather than through punitive measures. Canada and Mexico, major suppliers of steel and aluminum to the U.S., are likely to bear the brunt of the impact, with Canadian officials denouncing the tariffs as illegal.
Canadian Prime Minister Mark Carney confirmed that talks with the U.S. are ongoing, particularly given Canada’s heavy exposure—especially in aluminum, where it leads all exporters to the U.S. The Aluminum Association has called on Washington to target punitive tariffs specifically at countries like China while shielding trusted partners like Canada to avoid unintended economic fallout.
Businesses worldwide are bracing for the fallout. The new tariffs could affect an array of sectors, from aerospace and automotive to canned food and beverage packaging. “The ripple effect could hit almost every corner of the manufacturing economy,” said Georgetown trade policy expert Marc Busch.
Wednesday also marked the deadline for trading partners to submit their strongest counterproposals to avoid Trump’s next wave of comprehensive tariffs, which could be implemented after July 8. According to reports, the U.S. has requested specific tariff and quota plans, as well as solutions to non-tariff trade barriers, with promises to respond within days.
With high economic stakes and limited time remaining, much now hinges on whether key allies can strike favorable deals with Washington—or face another wave of tariffs with wide-reaching consequences.