Trump’s Doubled Tariffs Hit American Workers and Businesses Where It Hurts Most
By David LaGuerre –
The Trump administration’s decision to double tariffs on steel and aluminum imports to 50% as of June 4, 2025, represents a dramatic escalation in trade protectionism that will burden American companies, workers, and families with higher costs while delivering questionable benefits. This policy, justified under national security grounds, threatens to repeat the economic mistakes of the past while imposing real hardships on the very people it claims to protect.
The doubling of these tariffs affects steel and aluminum imports from most countries, with the notable exception of the United Kingdom, which remains at the previous 25% rate due to ongoing trade negotiations. This sweeping policy change impacts everything from the cars we drive to the canned goods in our pantries, creating a ripple effect that will touch nearly every American household.
How We Got Here: A History of Protectionist Overreach
To understand today’s policy, we need to look back at the roots of this trade approach. The original steel and aluminum tariffs weren’t born yesterday. President Trump first imposed 25% tariffs on steel and 10% on aluminum in March 2018, invoking Section 232 of the Trade Expansion Act of 1962 and citing national security concerns.
The justification then, as now, centered on protecting domestic steel and aluminum industries from what the administration characterized as unfair foreign competition, particularly from China’s overproduction. But here’s what actually happened: those 2018 tariffs did modestly boost domestic steel production by about 6 million metric tons by 2019, but they also triggered a cascade of economic consequences that hurt far more American workers than they helped.
The Federal Reserve found that higher input costs from those initial tariffs led to job losses in manufacturing sectors that relied on steel and aluminum. Think about it this way: for every job potentially saved in a steel mill, multiple jobs were threatened in auto plants, construction sites, and factories that make everything from appliances to energy infrastructure.
During the Biden years, there were attempts to ease these trade tensions through negotiations and selective tariff reductions. But domestic steel and aluminum producers continued lobbying for protection, and global overcapacity issues, particularly from China, persisted as legitimate concerns.
The Immediate Economic Burden on American Companies
Let’s be clear about who’s paying the price for this policy escalation. Despite political rhetoric about foreign countries paying tariffs, the economic reality is that American companies and consumers bear these costs.
Automotive Industry Under Pressure
The automotive sector faces perhaps the steepest challenges. Steel and aluminum are fundamental components in vehicle manufacturing, and the doubled tariffs immediately increase production costs for companies like Ford and General Motors. These aren’t abstract corporate concerns – they translate directly into higher car prices for families already struggling with affordability.
When you’re shopping for a new vehicle next year, remember that a significant portion of any price increase can be traced back to this policy decision. The automotive industry employs millions of Americans, and when production costs spike, companies face difficult choices between absorbing losses, raising prices, or cutting workforce.
Construction and Housing Costs Soar
The construction industry represents another major casualty. Steel is essential for everything from skyscrapers to suburban homes, and contractors are already bracing for significant cost increases. At a time when housing affordability remains a critical challenge for working families, these tariffs threaten to make new construction even more expensive.
Infrastructure projects – the very investments our communities need for economic growth – will now cost more to complete. Public works projects funded by taxpayer dollars will require larger budgets to achieve the same results, meaning less value for public investment.
Everyday Consumer Goods Feel the Pinch
Here’s where this policy hits closest to home: the Can Manufacturers Institute has warned that tariffs will increase the cost of canned goods throughout grocery stores. Aluminum packaging affects millions of products, from beverages to preserved foods that many families rely on for affordable nutrition.
Robert Budway of the Can Manufacturers Institute put it bluntly when criticizing the tariffs’ impact on canned food prices. When basic staples become more expensive, it’s working families who feel the squeeze most acutely.
The Real Economic Burden on Workers and Employees
The human cost of these tariffs extends far beyond corporate balance sheets. Manufacturing sectors that cannot absorb higher costs may resort to layoffs or production cuts, particularly in automotive and construction industries that employ millions of Americans.
We’ve seen this movie before. During the 2018-2019 tariff period, multiple studies documented job losses in downstream industries that outweighed gains in steel and aluminum production. The logic is straightforward: there are far more Americans working in industries that use steel and aluminum than in industries that produce these materials.
Energy sector workers face particular uncertainty. Oil drillers and renewable energy companies rely heavily on steel for pipelines and infrastructure. Higher material costs could slow down energy projects and potentially increase energy prices – hitting consumers with a double burden of higher energy costs and higher prices for goods.
The promise of protecting American jobs rings hollow when the policy threatens more jobs than it creates. This isn’t about being anti-American manufacturing – it’s about recognizing that economic policy should help the greatest number of working Americans, not favor one sector at the expense of many others.
Price Increases and the Impact on Regular Americans
Let’s talk about what this means for your family budget. U.S. steel and aluminum prices have already spiked since the tariff announcement, and companies throughout the supply chain are preparing to pass these costs onto consumers.
This contributes directly to inflationary pressures at a time when many families are still recovering from previous price increases. When the cost of raw materials jumps by this magnitude, it creates a cascade effect throughout the economy.
Consider your daily life: the appliances in your kitchen, the cars in your driveway, the buildings where you work – all contain steel and aluminum components. The price increases from these tariffs will show up in countless ways, often hidden within the final cost of goods and services.
Working families deserve honest talk about trade policy. When politicians promise that foreign countries will pay for tariffs, they’re not telling the truth about how international trade actually works. American importers pay these tariffs, and those costs get passed along to American consumers.
The False Promise of National Security Protection
Supporters of the tariffs, including Kevin Dempsey of the American Iron and Steel Institute, argue these measures prevent import surges that harm U.S. producers. U.S. Steel and Cleveland-Cliffs have expressed support, naturally, as they stand to benefit from reduced competition.
But we should question whether this approach actually strengthens national security. A robust economy with competitive manufacturing across multiple sectors contributes more to national strength than propping up individual industries through protectionist measures.
True economic security comes from having diverse, competitive industries that can adapt and innovate. When we artificially protect some sectors while handicapping others, we may actually weaken our overall economic resilience.
The selective application of these tariffs – exempting the UK while hitting other allies like Canada – suggests political considerations rather than consistent national security logic. Canada warned that the tariffs make their exports to the U.S. economically unviable, disrupting the highly integrated North American supply chain that has contributed to regional economic strength.
A Better Path Forward
Critics of this analysis might argue that protecting domestic industries from unfair foreign competition serves important economic and strategic purposes. They have a point about global overcapacity issues, particularly China’s role in distorting steel and aluminum markets through subsidies and overproduction.
However, research consistently shows that broad tariffs like these create more economic harm than benefit. A 2024 U.S. International Trade Commission report found that previous tariffs hurt manufacturing jobs and increased prices across multiple sectors – exactly what we’re seeing unfold again.
There are more effective ways to address unfair trade practices: targeted enforcement actions against specific dumping behaviors, international coordination with allies to address overcapacity, and strategic investments in American competitiveness rather than blanket protection.
Economic policy should be judged by its results for working Americans, not by its political symbolism. When policy makers choose protectionism over competition, it’s usually working families who pay the price through higher costs and fewer opportunities.
We need trade policies that strengthen American competitiveness without imposing unnecessary burdens on workers and consumers. That means smart enforcement of trade rules, strategic investments in domestic capabilities, and honest recognition that economic nationalism often hurts the very people it claims to protect.
The doubled tariffs on steel and aluminum represent a step backward toward policies that prioritize political theater over economic evidence. American workers and families deserve better than trade policies that make their lives more expensive while delivering questionable benefits. The path forward requires honest assessment of these policies’ real costs and a commitment to evidence-based approaches that strengthen our entire economy.
What do you think about these tariff policies and their impact on your community? Share your thoughts in the comments below, and don’t forget to share this analysis with others who care about economic policy that works for working families.
