President Donald Trump has intensified the US-China trade conflict by doubling tariffs on steel and aluminum imports from 25% to 50%, effective June 4, 2025.
This move escalates tensions as trade talks between the US and China stall, with Trump describing Chinese President Xi Jinping as “very tough” and “extremely hard to make a deal with” on social media.
China responded by accusing the US of violating trade agreements and vowed to protect its interests, signaling a fragile detente after recent tariff easing between the two countries.
The ongoing trade war is contributing to a slowdown in the global economy, with the OECD warning that growth is heading toward its weakest pace since the COVID-19 pandemic. The OECD stressed that easing trade tensions is crucial to boosting investment and stabilizing prices.
The tariff increase affects most US trading partners except the United Kingdom, which has a preliminary trade deal with the US and maintains a 25% tariff until at least July 9. Key partners like Canada, Mexico, and the European Union face higher costs, with Canada being the largest aluminum exporter to the US and Canada and Mexico among the top steel exporters.
US trade talks are ongoing, with negotiators from the EU and the US meeting in Paris amid looming deadlines for tariff decisions. The White House has sent letters reminding partners that the 90-day suspension on broader reciprocal tariffs will expire in early July, urging faster trade negotiations. So far, only a deal with the UK has been announced.
Legal challenges to the tariffs continue, with a federal appeals court allowing the tariffs to remain temporarily after a lower court blocked them, calling the method of implementation unlawful. The Trump administration has indicated it may pursue further actions regardless of court rulings.
Overall, Trump’s tariff policies are reshaping global trade dynamics, increasing costs for US industries reliant on imported metals, and heightening tensions with major trade partners.
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