Trump doubles steel tariffs after court blow and faces stalled talks with Canada, China, and India
US President Donald Trump announced plans to double tariffs on imported steel and aluminum to 50 percent just days after a US trade court ruled that many of his earlier tariffs were illegal, according to Bloomberg.
The move, presented at a rally near Pittsburgh, signalled Trump’s continued reliance on aggressive tariff measures despite growing legal and diplomatic pressure.
The ruling from the US Court of International Trade on May 28 found that Trump’s “Liberation Day” global tariffs and fentanyl-related duties violated the International Emergency Economic Powers Act (IEEPA), as reported by Bloomberg.
The court granted summary judgment without trial, stating the facts were clear.
The Trump administration immediately appealed, and a federal appeals court temporarily reinstated the contested tariffs the next day while it considers a longer stay.
As per Bloomberg legal correspondent Erik Larson, the administration used IEEPA—a law traditionally reserved for sanctions during national emergencies—to justify sweeping trade actions.
The plaintiffs, including a coalition of Democratic-led states and small businesses, argued that only Congress can impose such broad tariffs, and trade deficits do not meet the threshold of a national emergency.
Despite this legal blow, Trump invoked Section 232 of the Trade Expansion Act—an established authority—to justify raising steel and aluminum tariffs to 50 percent.
According to Bloomberg’s Brendan Murray, this law allows duties on imports deemed threats to US national security and is considered more legally durable.
Trump’s broader tariff agenda has had widespread effects on trade negotiations, particularly with countries like Canada.
As per CNN, Canada has imposed retaliatory tariffs on approximately $44bn worth of US goods, including a 25 percent duty on cars and metals, in response to US tariffs.
Canadian exports such as softwood lumber, steel, and aluminum—most of which are destined for the US—have been directly impacted.
Talks under a 90-day tariff truce with China have produced little progress, and negotiations with the UK, India, Japan, South Korea, and Switzerland remain inconclusive.
According to Bloomberg, India has pushed back against the 10 percent universal tariff and conditioned further talks on its removal.
Canada, formerly bound to the US through the USMCA agreement, also remains in a state of uncertainty.
The US briefly re-imposed a 25 percent tariff on Canadian goods in March before suspending it in exchange for border and crime enforcement commitments.
However, many products that fall outside USMCA compliance continue to face 25 percent duties.
General Motors CEO Mary Barra told CNN that tariffs could cost the company between $4bn and $5bn this year.
Small businesses have also reported steep increases in import costs, with one Minnesota-based entrepreneur telling CNN that a single shipment of goods would now cost $230,000 to land in the US.
According to the Federal Reserve’s Beige Book, US retailers and hospitality providers have reported fewer Canadian tourists, which has affected business in Northern states.
Canadian consumer habits have also shifted in response, with residents opting for domestic or non-American goods in protest.
Bloomberg reported that the Trump administration is exploring alternative legal frameworks—such as Section 301 for unfair trade practices and Section 122, which allows 15 percent tariffs for 150 days—to advance its trade strategy if the Supreme Court upholds the trade court’s ruling.
While the administration maintains that negotiations are ongoing, Bloomberg noted that countries have grown sceptical.
Without clear legal authority, some trade partners are reportedly choosing to wait out the uncertainty, reducing Trump’s leverage.
With the July 9 deadline for finalising several trade talks approaching and legal challenges mounting, the administration’s ability to push through sweeping trade reforms appears increasingly constrained.
