financetom
Business
financetom
/
Business
/
Higher metals tariffs kick in as deadline for 'best' offers arrives
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Higher metals tariffs kick in as deadline for 'best' offers arrives
Jun 3, 2025 5:35 PM

(Reuters) -The U.S. tariff rate on most imported steel and aluminum will double on Wednesday as President Donald Trump ratchets up a global trade war on the same day he expects trading partners to deliver their "best offer" in bids to avoid punishing import tax rates on other goods from taking effect in early July.

Trump late Tuesday signed an executive proclamation that puts into effect from Wednesday his surprise announcement last week that he was taking the tariffs on steel and aluminum imports that had been in place since March to 50% from 25%.

"We started at 25 and then after studying the data more, realized that it was a big help, but more help is needed. And so that is why the 50 is starting tomorrow," White House economic adviser Kevin Hassett said in explaining the move at a steel industry conference in Washington on Tuesday. The increase comes into effect at 12:01 am (0401 GMT).

The increase applies to all trading partners except Britain, the only country so far that has struck a preliminary trade agreement with the U.S. during a 90-day pause on a wider array of Trump tariffs. The rate for steel and aluminum imports from the UK - which does not rank among the top exporters of either metal to the U.S. - will remain at 25% until at least July 9.

About a quarter of all steel used in the U.S. is imported, and Census Bureau data shows the increased levies will hit the closest U.S. trading partners - Canada and Mexico - especially hard. They rank No. 1 and 3, respectively, in steel shipment volumes to the U.S.

Canada is even more exposed to the aluminum levies as the top exporter to the U.S. by far at roughly twice the rest of the top 10 exporters' volumes combined. The U.S. gets about half of its aluminum from foreign sources.

The unexpected increase in the levies jolted the market for both metals this week, especially for aluminum, which has seen price premiums more than double so far this year. With little current capacity to increase domestic production, import volumes are likely to be unaffected unless the price increases undercut demand.

'BEST OFFER' DUE DATE

Wednesday is also when the White House would like trading partners to submit their proposals for deals that might help them avoid Trump's hefty "Liberation Day" tariffs from taking effect in five weeks.

Administration officials have been in active talks with a number of countries since Trump announced a pause on those tariffs on April 9, but to date only the UK deal has come to fruition. Even that agreement, which provided the basis for the carve out from the metals tariffs, is more of a preliminary framework for more talks.

With just weeks remaining, the Trump team is eager to bring more deals over the line.

Reuters reported on Monday that the U.S. Trade Representative was asking countries to list their best proposals in a number of key areas, including tariff and quota offers for purchase of U.S. industrial and agricultural products and plans to remedy any non-tariff barriers.

In turn, the letter promises answers "within days" with an indication of a "landing zone," including what tariff rates countries can be expected to be saddled with after a 90-day pause on the tariffs expires on July 8. At issue for most trading partners is whether they retain the current baseline rate of 10% on most exports to the U.S. after that date, or something sharply higher in many cases.

White House spokeswoman Karoline Leavitt confirmed the report on Tuesday, saying: "USTR sent this letter to all of our trading partners just to give them a friendly reminder that the deadline is coming up."

Other items requested by the Trump administration include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter.

(Additional reporting by Alexandra Alper in Washington; Writing by Dan Burns; Editing by Lincoln Feast.)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Update: Market Chatter: Stellantis Set to Begin Production of Small Leapmotor Electric Vehicles
Update: Market Chatter: Stellantis Set to Begin Production of Small Leapmotor Electric Vehicles
Mar 22, 2024
10:58 AM EDT, 03/22/2024 (MT Newswires) -- (Updates with Stellantis' ( STLA ) response in the fourth paragraph.) Stellantis ( STLA ) will begin the production of Leapmotor's T03 small electric cars at a Stellantis ( STLA ) plant in Poland as early as Q2 as part of the companies' joint venture, Reuters reported Friday, citing two people close to...
Why Is EHang Holdings Stock Gaining Today?
Why Is EHang Holdings Stock Gaining Today?
Mar 22, 2024
EHang Holdings Limited ( EH ) shares are trading higher on Friday. The company announced that Japan’s first urban air mobility, or UAM Center, was established in Tsukuba City, Ibaraki Prefecture. The center serves as a demonstration flight site, ground infrastructure, and maintenance base for EHang’s various pilotless electric vertical takeoff and landing aircraft in the region, including EH216-S, the company said in...
FedEx Poised for Fiscal 2025 Margin Growth as Express Unit Shines, UBS Says
FedEx Poised for Fiscal 2025 Margin Growth as Express Unit Shines, UBS Says
Mar 22, 2024
10:59 AM EDT, 03/22/2024 (MT Newswires) -- FedEx ( FDX ) fiscal Q3 earnings surpassed expectations due to Express' operating income benefiting from lower-than-expected incentive compensation accrual and effective capacity utilization in ground and freight networks to mitigate the impact of Memphis snowstorms, UBS said in a note Friday. Express is set up for significant margin improvement in fiscal 2025...
3D Systems Receives Notice for Non-Compliance With NYSE Listing Requirements
3D Systems Receives Notice for Non-Compliance With NYSE Listing Requirements
Mar 22, 2024
11:05 AM EDT, 03/22/2024 (MT Newswires) -- 3D Systems ( DDD ) said Friday that it received a March 18 notice for its non-compliance with the New York Stock Exchange's continued listing requirements after it failed to timely submit its Form 10-K annual report for the year ended Dec. 31, 2023 to the US Securities and Exchange Commission. The company...
Copyright 2023-2026 - www.financetom.com All Rights Reserved