After waking up, Trump, who had been quiet for a few days, once again ignited the tariff war with the globe. The US president wants to lose again!

At 7:16 am Beijing time today (May 31), and at 7:16 pm local time on May 30 in the United States, Trump once again sent a message through his social media Trush Social, announcing that the steel import tariffs would be raised from the current 25% to 50%, and clearly stated that the policy would officially take effect in five days.

The White House then stated in an official announcement: "In order to further protect the American steel industry from unfair foreign competition, starting next week, the tariff rate for all imported steel will double."

This move has once again caused market fluctuations worldwide. The US steel sector surged after hours, with Cleveland-Cliffs' stock price surging by 23% at one point, reflecting the short-term welcome attitude of some companies towards this policy.

As early as February 10, Trump signed an executive order, announcing a 25% tariff on all imported steel and aluminum, calling it a key step in the "revival of American manufacturing." This policy officially took effect on March 12.

Now, less than three months later, he is making another move, attempting to further promote "domestic manufacturing" by increasing tariffs. Trump claimed: "The American steel and aluminum industries are recovering at an unprecedented speed, and this doubling of tariffs is another major benefit for American workers and businesses."

He also emphasized that all automobile manufacturers, including Tesla, must complete the production of vehicles and parts within the United States; otherwise, they will face stricter reviews and restrictions.

According to data from the US Department of Commerce, in 2024, the US imported approximately 28 million tons of steel, with the top five supplying countries as follows: Canada accounted for about 19%, making it the largest supplier of steel to the US; Brazil accounted for 12%, mainly providing hot-rolled and cold-rolled steel;

South Korea accounted for 11%, with POSCO being the main exporter; Mexico accounted for 10%, Japan accounted for 8%, focusing on high-end automotive steel.

In addition, EU countries collectively accounted for around 15% of US steel exports, while China, although subject to strict restrictions, still maintained a certain scale of inflow through third-country transshipment.

This doubling of tariffs means that the cost of steel products from these countries entering the US market will significantly increase, potentially weakening their competitiveness.

However, this approach may backfire — domestic steel capacity in the US has not fully recovered. Although high tariffs can stimulate domestic production, they may also push up manufacturing costs and harm the interests of industries dependent on imported steel, such as the automotive, construction, and machinery sectors.

Despite the constant promotion of the "steel industry revival" by the Trump administration, reality is not optimistic. Currently, US steel capacity is only around 100 million tons, far below China's (1 billion-ton level) and the EU's (150 million tons). Even if tariffs are doubled, it will be difficult to fill the gap in the short term, which may instead exacerbate inflationary pressures.

In addition, the American Iron and Steel Institute (AISI) pointed out that the recovery of the US steel industry still requires years of investment and technological upgrades, and relying solely on tax increases cannot solve fundamental problems. For example, the most core materials of the US, such as high-strength steel and galvanized sheets, still rely on imports. If tariffs are imposed indiscriminately, it will only worsen the situation for downstream industries.

Therefore, this round of tariff doubling is more of a political show rather than a genuine industrial revitalization. It not only strikes allies but also forces US consumers and small and medium-sized enterprises to bear higher raw material prices.

Trump's "steel dream" has never ceased. He might think that as long as he doubles the tariffs, America can become great again. But he forgot that steel is not made by slogans but by technology and the market.

Original article: https://www.toutiao.com/article/1833599262263623/

Disclaimer: The article represents the author's personal views.