Trump Increases Steel and Aluminum Tariffs to 50%, Spares UK… For Now

Intermediate | June 8, 2025

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A Big Change for Metal Imports

Trump Steel Tariffs: What Are the New Tariffs?

President Donald Trump has made a big change to the taxes on steel and aluminum coming into the country. This tax is called a tariff. Before this week, the tariff was 25% on most steel and aluminum imports. But now, it has doubled to 50%!

Why This Matters

This higher tax started on Wednesday, June 4th. This means that businesses in the U.S. that buy steel and aluminum from other countries will have to pay a lot more for it. Manufacturers use these metals to make many things, from cars and refrigerators to smaller items like soup cans.

The Reason Behind the Change

President Trump said this increase is needed to protect American industries. He believes that other countries have been selling steel and aluminum at unfairly low prices, which hurts businesses and jobs in the U.S. The goal is to make American steel and aluminum more competitive. This decision to raise Trump steel tariffs is seen as a way to counter foreign competition.

Why the UK is Different This Time

A Special Case for the UK

Now, here’s an interesting part: the United Kingdom is a special case. While most countries now face the 50% tariff, the tax on steel and aluminum from the UK is staying at 25%. This is because the U.S. and the UK have been working on a special trade deal called the Economic Prosperity Deal (EPD).

What Could Change in July

However, this lower rate for the UK might not last forever. President Trump’s order says that the 25% rate could go up to 50% on or after July 9th, 2025. This could happen if the U.S. decides the UK has not followed the terms of their trade agreement. It’s a bit of a waiting game for UK steel and aluminum companies.

The Bigger Picture

This situation highlights how trade agreements can impact businesses and prices. Economists are watching closely to see how the higher Trump steel tariffs will affect companies that use steel and aluminum and if consumers will end up paying more for products made with these materials.

Vocabulary

Tariff (noun): A tax on goods coming into or going out of a country.
*Example: “The new tariff on imported cars made them more expensive.”
Import (verb/noun): To bring goods into a country from another country (verb); goods brought in from another country (noun).
*Example: “The store decided to import coffee beans from Brazil.”
*Example: “Coffee is a major import for this country.”
Exemption (noun): Official permission not to do something, like pay a tax.
*Example: “Because of the trade deal, the country received an exemption from the tax.”
Proclamation (noun): An official public announcement.
*Example: “The president issued a proclamation about the new holiday.”
Capacity Utilization (noun): The extent to which a factory or industry is using its full potential to produce things.
*Example: “Higher orders led to increased capacity utilization at the factory.”
Trade Deal (noun): An agreement between countries about how they will trade with each other, often reducing or removing taxes or restrictions.
*Example: “Signing the trade deal should make it easier to sell goods in that country.”
Levy (noun/verb): A tax, fee, or fine (noun); to impose a tax, fee, or fine (verb).
*Example: “They decided to levy an extra charge for plastic bags.”
*Example: “The government imposed a levy on luxury goods.”
Undermine (verb): To make something weaker or less likely to succeed.
*Example: “Critics say the new policy will undermine public trust.”
Counter (verb): To do something in response to an action by someone else, especially to oppose or stop them.
*Example: “The company released a statement to counter the negative reports.”
Spared (verb – past tense of spare): To avoid causing someone to experience something unpleasant; to not harm or punish someone.
*Example: “Luckily, the coastal town was spared the worst of the storm.”

Discussion Questions (About the Article)

What was the old tariff rate on steel and aluminum imports?
According to the article, why did President Trump increase the tariffs?
Why was the United Kingdom treated differently from other countries?
What is the name of the trade deal mentioned in the article?
What could happen to the UK’s tariff rate after July 9th?

Discussion Questions (About the Topic)

Do you think increasing tariffs is a good way to protect a country’s industries? Why or why not?
How might higher prices for materials like steel and aluminum affect the cost of things you buy?
What are some potential benefits and drawbacks of countries making special trade deals with each other?
How important do you think international trade is for the global economy?
Can you think of other examples where countries use taxes or rules to control imports?

Related Idiom

“A welcome pause”
Meaning: A temporary stop in something difficult or unpleasant that provides relief.
Example: For the UK steel industry, the decision to keep tariffs at 25% was “a welcome pause.”

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This article was inspired by: Yahoo News, June 4, 2025