Trump raises steel, aluminum tariffs to 50%, hitting key Ukrainian export

U.S. President Donald Trump signed an executive order on June 3 to double tariffs on steel and aluminum imports, raising duties from 25% to 50%, the White House announced.

Trump's new order builds on a Feb. 10 executive action that imposed a flat 25% tariff on all steel and aluminum imports. Steel production is one of Ukraine's core industrial sectors and its second-largest source of foreign currency after agriculture.

The White House cited the earlier rate's failure to "develop and maintain the rates of capacity production utilization that are necessary for the industries' sustained health and for projected national defense needs."

Trump defended the new duties as essential to national security, claiming they will "reduce or eliminate the threat posed by imports" and ensure self-sufficiency in strategic industries.

Economy Minister Yuliia Svyrydenko said earlier this year that the share of Ukrainian steel in the U.S. market remains small and poses no threat to domestic U.S. producers.

However, tariffs further jeopardize Ukraine's key metallurgical exports, particularly ArcelorMittal Kryvyi Rih and Interpipe, which are already suffering due to the war.

Ukraine's metallurgical products make up 57.9% of Ukraine's exports to the U.S., or in dollar amounts, $503 million out of $869 million, according to Svyrydenko. It is unclear what time frame those figures represent.

The U.K. is the only exception to the new tariffs, which will remain at the 25% level for British imports, according to Bloomberg.

Trump defended the tariffs as a way to simplify duties on metals and hinted at retaliatory measures against countries imposing tariffs on American goods.