JAKARTA — US President Donald Trump’s decision to double import tariffs on steel and aluminium from 25% to 50%, effective Wednesday (4/6), has drawn condemnation from a wide range of stakeholders, particularly those in industries directly affected.

Although Trump described the move as a measure to protect the domestic steel industry, business leaders, industry associations, and economists see it as a threat to business continuity, employment, and international trade relations.

Rick Huether, CEO of Maryland-based decorative can manufacturer Independent Can Co, said the decision created extreme uncertainty within the industry. His company imports steel from Europe and heavily relies on overseas supplies, which now face significantly higher tariffs.

“It’s always the question — is this just a tactic or a long-term plan from Trump? Because if it’s permanent, we don’t know what to do. Many customers may just switch to plastic or paper packaging,” he told the BBC on Wednesday (4/6).

The economic impact goes beyond supply chains and directly affects the financial health of small and medium-sized businesses.

Chad Bartusek, Director of Supply Chain at Illinois-based family-owned manufacturer Drill Rod & Tool Steels, said he was forced to absorb a sudden doubling of tariff costs in just a few days.

“I woke up, saw the news, and my jaw literally dropped. We expected to pay USD 72,000 — now it’s nearly USD 145,000. It’s like taking one hit after another,” he said.

As a result, Bartusek had to raise product prices by 8–14% and cut employee work hours.

Similar concerns have emerged in the UK. Gareth Stace, Director General of UK Steel, said that while Britain has so far maintained the 25% tariff thanks to an ongoing trade agreement, the looming uncertainty still threatens the viability of exports to the US.

“If the 50% tariff really goes into effect, it could be catastrophic for us. About 7% of UK steel exports go to the US, and most of those orders have now been cancelled,” he said.

He described the policy as a massive barrier for non-US steel producers.

From an economic policy standpoint, Erica York, Vice President of Federal Tax Policy at the Tax Foundation, called Trump’s move a strategic blunder.

High tariffs on inputs like steel and aluminium, she argued, harm the manufacturing and construction sectors that depend heavily on those commodities.

“This is a reckless policy. Our data show that during Trump’s first term, similar tariffs added only 1,000 jobs in the steel sector but eliminated 75,000 jobs in other industries. This time, the damage could be even worse,” she explained.

The European Union has echoed the criticism. Olof Gill, spokesperson for the European Commission on trade, confirmed that the bloc is engaged in intense negotiations with the US to reverse the tariffs.

“We’re hoping the US will walk this back, as they did before. But so far, there are no guarantees,” he said.

Amid the wave of backlash, President Trump defended the policy, saying it was necessary to prevent other countries from undercutting the US steel industry.

“At 25%, they can get through the fence. But at 50%, nobody’s stealing your industry,” he declared during a speech at a US Steel plant.

But for many, Trump’s fence is seen as a wall obstructing fair trade and threatening the viability of businesses that depend on global supply chains. (EF/ZH)