On Wednesday, the U.S. officially doubled its tariffs on imported steel and aluminum, from 25% to 50%, as part of President Trump's aggressive trade policy strategy. The increase coincides with a key deadline: trading partners were asked to submit their "best offers" to avoid broader import tariffs set to take effect in early July.

The United Kingdom is currently the only country exempt from the 50% rate, having reached a preliminary trade deal with the U.S. Other allies, such as Canada, Mexico, and the EU, face a severe impact, particularly in the metals and manufacturing sectors.

Key Impacts:

• Market Disruption: Aluminium prices surged amid uncertainty. Domestic U.S. production can't quickly fill the gap, so buyers will face higher costs or risk supply issues.

• Business Fallout: European firms are already feeling the pain. French brand Remy Cointreau scaled back its growth plans; Austria’s Voestalpine and Germany’s VDMA reported earnings hits and a decline in orders.

• Trade Friction: Canada and Mexico, key U.S. partners, are especially vulnerable. Canada’s aluminium exports are critical, and Mexico argues the tariffs are unfair.

• Next Steps: Negotiations are ongoing, but time is short. If deals aren’t struck by July 8, a broader set of “reciprocal” tariffs could be rolled out.

Bottom Line for Business:

The new tariff regime is increasing costs, fueling uncertainty, and straining U.S. relationships with close allies. Companies relying on steel, aluminum, or cross-border trade with the U.S. should prepare for continued volatility—and possibly, price hikes.