Tag: U.S. manufacturing

Steel and Aluminum Tariffs: On June 4, 2025, President Donald J. Trump’s administration enacted a sweeping increase in U.S. import duties on steel and aluminum, doubling the tariff rate from 25 percent to 50 percent on most trading partners. At the same time, Washington imposed a firm deadline for foreign governments to submit their “best offers” to negotiate exemptions under broader trade terms slated to take effect on July 8, including what the administration has termed its “Liberation Day” tariffs. Aside from the United Kingdom—which secured a preliminary agreement on May 8, maintaining a 25 percent steel and aluminum rate until July 9—no other nation had finalized a deal by the June 4 deadline. In the words of Trade Representative Jamieson Greer, “These measures reinforce American sovereignty and send a clear message: we will not tolerate unfair trade practices” (Office of the U.S. Trade Representative, June 4, 2025).

U.S. manufacturing activity contracted for the third consecutive month in May 2025, as measured by the Institute for Supply Management (ISM) index at 48.5 percent—below the 50-percent threshold that signals contraction (). This downturn reflects persistent headwinds from tariffs imposed under Section 232 (national security) and Section 301 (unfair trade practices), which have elevated input costs and stoked supply-chain disruptions. The core issue transcends mere economic metrics: it implicates constitutional questions about executive authority to unilaterally impose broad trade barriers versus Congress’s role in regulating commerce under Article I, Section 8 of the U.S. Constitution. Moreover, these tariffs raise potential conflicts with U.S. obligations under the World Trade Organization (WTO) and bilateral agreements, as affected trading partners have filed formal disputes ().