America’s steel and aluminum industries are vital not only to the economy but also to national security. Recognizing this, President Donald Trump has issued new proclamations to restore and reinforce the Section 232 tariffs he introduced in 2018, ensuring the strength of American steel and aluminum for years to come.

In 2018, President Trump imposed tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962. This move led to more than $15 billion in investments in the U.S. steel industry, boosting production and opening new facilities. Major companies like Century Aluminum, the largest in the U.S., restarted production lines, and Alcoa expanded its operations, increasing domestic aluminum output.

However, under President Joe Biden’s leadership, the American steel and aluminum industries face new challenges. The current administration’s wave of product exclusions, country exemptions, and relaxed enforcement has allowed foreign nations, including some U.S. allies, to bypass tariffs. This has led to unfair competition, with countries like China and Russia using transshipment routes through Mexico and Canada to evade tariffs.

Japan, facing declining domestic demand, has targeted the U.S. market with specialty steel products, underselling U.S. producers. Meanwhile, Canada has provided significant subsidies to ArcelorMittal, making it harder for American steelmakers to compete. Mexico has also seen a huge increase in steel rebar imports, while South Korea flooded the market with more than 2.6 million metric tons of steel in 2023 alone, making it harder for U.S. producers to maintain market share.

Brazil has also taken advantage of tariff loopholes, sending nearly 4 million metric tons of semi-finished steel to the U.S. in 2023. With support from export subsidies and a weak currency, Brazilian producers have undercut American steelmakers. This has caused significant harm to U.S. steel producers, with capacity utilization falling below the critical 80% mark, and many production lines have idled.

The American aluminum industry has faced similar struggles. Australia has increased aluminum exports to the U.S., while China and Russia have used transshipment through Mexico and Canada to avoid tariffs. As a result, U.S. aluminum production has dropped by 30%, and many smelters, such as Century Aluminum’s facility in Hawesville, Kentucky, have been idled. Major producers like Alcoa and Magnitude 7 Metals have also reduced operations, further weakening the domestic aluminum sector.

In response, President Trump has reinstated the 25% tariff on steel imports and increased the aluminum tariff from 10% to 25%. His new approach eliminates country-specific exemptions and trade agreements, ensuring a level playing field for American producers.

The Trump 2.0 tariffs also address the issue of transshipment, where countries use Mexico or Canada as processing hubs to avoid tariffs. Under the new tariffs, all imports will be subject to the same standards, regardless of where they were processed, closing the loopholes that allowed tariff evasion.

The Trump administration is also cracking down on the practice of shipping semi-finished products, such as hot-rolled steel or aluminum billets, to other countries where they are minimally processed before being exported to the U.S. tariff-free. The new tariffs will include these products, ensuring that they are subject to the same import duties as raw materials.

The elimination of product exclusions will also prevent the overburdening of the Department of Commerce, which previously granted numerous exemptions. Now, U.S. steel and aluminum producers can compete fairly without facing competition from foreign imports that evade tariffs.

To enforce these new measures, U.S. Customs and Border Protection will step up investigations and penalties for tariff evasion and misclassification.

President Trump’s steel and aluminum proclamations reaffirm his strong commitment to American workers and national security. These actions mark the beginning of a new golden age for American steel and aluminum, ensuring prosperity for these critical industries in the years to come.