Aluminum and steel tariffs doubled to 50% on Wednesday, sending domestic metal premiums up more than half since April and driving material price spikes across manufacturing and construction.

That increase follows a series of actions that began in mid-March, when the administration restored a 25% duty on aluminum imports — ending exemptions for Canada, Mexico, the European Union and Japan — and imposed a “smelted and cast” requirement for duty-free status. 

On April 2, the scope was expanded to include empty aluminum cans and canned beer, effective retroactively as of April 4. On May 30, the president announced that the tariff would double to 50%, effective June 4, to bolster domestic producers.

Those moves came amid legal challenges. On May 28, the U.S. Court of International Trade vacated the “fentanyl” and “reciprocal” tariffs, ruling that they exceeded presidential authority. However, an appeals court stayed the ruling on May 29, keeping those duties in place. A temporary block on a 10% “universal tariff” imposed April 5 was lifted by the appeals court on May 29.

Earlier, in February, the White House imposed a 25% tariff on most imports from Canada and Mexico and a 10% levy on Chinese goods, citing fentanyl trafficking and border security. In March, the China tariff rose to 20 percent for insufficient opioid enforcement, and steel imports faced a renewed 25% duty with a “melted and poured” requirement. 

As of June 4, the U.S. tariff framework stood at approximately 30% on Chinese imports, 25% on most goods from Canada and Mexico, and 50% on steel and aluminum from all countries except the U.K.

Broader Economic Impacts

These sweeping tariffs have intensified inflationary pressures. Deutsche Bank analysts estimate that metal levies alone could add roughly 0.4 percentage points to core inflation in 2025. 

The nonpartisan Congressional Budget Office projects that, if tariffs remain at current levels, U.S. GDP growth could slow from approximately 1.6% in the first quarter to near zero by year-end. 

Metal prices are climbing: hot-rolled coil steel rose 6% in late May, while the aluminum premium has already spiked 54% in the first days of June, forcing higher retail prices on autos, appliances, and electronics.

The Wall Street Journal has conducted considerable reporting on how supply chains have fractured as importers scramble to secure alternatives. Some firms report lead times for raw materials stretching from weeks to months, and planned factory expansions have been postponed or canceled amid unpredictable cost increases. 

Closing the de minimis exemption has burdened small‑goods merchants, who either absorb higher duties or pass costs to consumers, according to the St. Louis Federal Reserve Bank’s blog, FRED. 

Meanwhile, the World Trade Organization is set to review challenges from the EU and China, each arguing U.S. measures violate international norms. 

The White House has argued the tariffs are essential to revive domestic manufacturing and protect national security; critics counter that prolonged trade confrontation risks fragmenting global supply chains, reducing cross-border investment, and inflicting long-term economic harm.

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Construction‑Industry Effects

Developers on both coasts say project budgets have swelled by 8‑15% as steel and aluminum costs rise. One Washington, D.C., warehouse developer saw steel expenses alone increase by $15 million on a $100 million project, according to a report by Business Insider. 

The report also cited a $300 million recycling plant in Erie, Pa., which was canceled in part because tariff-driven cost escalations delayed federal loan guarantees. Although domestic mills are ramping up, analysts cite that regulatory constraints and high energy costs mean U.S. output will not replace lost imports for years.

Labor has also tightened. With stricter immigration enforcement and tariffs on Canadian and Mexican lumber and Chinese semiconductors, wages for skilled trades — especially those that rely on foreign labor — have risen an estimated 25‑35% since early 2025. 

Roofers, electricians and welders command higher pay as contractors compete for a shrinking pool of experienced workers. The combined effect of rising material and labor expenses has squeezed margins: a survey by Roofing Contractor found 23% of builders expect profit margins to decline over the next six months — an all‑time high since October 2024. 

As a result, many firms are reporting that they are scaling back bids, delaying non-essential projects, and seeking contract renegotiation to account for volatile material prices. 

Although federal infrastructure spending remains robust, private commercial and residential segments face headwinds from elevated borrowing costs and reduced investor appetite linked in part to tariff uncertainty.