Background on the Situation
In 2018, under the authority granted by Article 232 of the Trade Expansion Act of 1962, former President Donald Trump imposed tariffs on steel and aluminum imports, initially at 25% for steel and 10% for aluminum. These measures were taken after the Secretary of Commerce determined that these imports posed a threat to US national security.
Tariff Increases and Their Impact
In June 2025, Trump further expanded and increased tariffs on steel and aluminum to 50%, affecting nearly all trading partners. As a result, Mexican exports of steel and aluminum to the US plummeted by 29% and 20%, respectively, in just three months (January to July 2025) according to the Department of Commerce data.
- Steel exports fell to $1,594 million
- Aluminum exports dropped to $403 million
These declines occurred despite the US importing less steel and aluminum in value terms from January to July 2025 compared to the same period in 2024.
Global Context and Competition
In the steel category, Mexico was surpassed by the European Union ($3,902.8 million, +0.4%), Canada ($3,212.9 million, -30%), and South Korea (-6%). Above Mexico in aluminum were competitors like Canada (-13%, $4,937.9 million), the European Union (+3%, $1,090.4 million), and the United Arab Emirates (+53%, $1,023.9 million).
Diverse Opinions Among US Producers
US steel producers support the tariffs, claiming they are essential for boosting domestic production. They advocate for the expansion of tariffs on steel derivatives. However, US aluminum producers hold mixed opinions about the tariffs.
- Some groups argue that rapid tariff expansion has created compliance burdens for businesses and could negatively impact US employment in steel and aluminum-using sectors.
Congressional Analysis and Future Implications
A congressional analysis suggests that lawmakers may consider the potential implications of steel and aluminum tariffs on the US economy and related trade authority matters.
Throughout Trump’s first term and Biden’s presidency, the US negotiated country-specific exemptions and granted specific entity exclusions along with general approved exemptions applicable to any importer. Countries like Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom received exemptions during either Trump’s or Biden’s tenure.
Key Questions and Answers
- What were the initial tariffs imposed by Trump in 2018? An arrival of 25% on steel and 10% on aluminum imports from most trading partners.
- When were tariffs expanded to include steel and aluminum derivatives? In 2020, Trump extended tariffs to cover 13 new product codes for steel and aluminum derivatives.
- What happened to tariffs under the Biden administration? The Biden administration largely maintained these tariffs and increased aluminum import tariffs from Russia to 200% in response to Russia’s war against Ukraine in 2023.
- Which countries received exemptions from tariffs? Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom received exemptions during Trump’s or Biden’s presidency.
