Steel, Aluminum Tariff Hikes Will Cost State $250M

The Trump administration’s doubling of tariffs on steel and aluminum imports will cost Connecticut another $250 million annually.

Tariffs on all steel and aluminum imports except those from the United Kingdom jumped to 50% June 4, up from the 25% imposed March 12.

U.K. imports remain subject to the 25% tax, with possible changes or quotas starting July 9, 2025, depending on the status of current U.S. trade negotiations with that country.

Connecticut imported $1.04 billion in steel and aluminum and derivative products in 2024, including $38.96 million worth from the U.K.

The March 12 tariffs added $260 million to the cost of those imports. The June 4 hikes add another $250.3 million, bring total additional steel and aluminum costs to $510.3 million.

In all, the administration’s trade policies will cost will hike the cost of goods imported into Connecticut by more than $3.2 billion—pending the outcome of current trade talks between the U.S. and China.

Competitive Disadvantage

Imposed under the Trade Expansion Act of 1962, the steel and aluminum tariffs are not facing the same legal challenges as the broader April 9 tariffs.

The U.S. Chamber of Commerce noted in a statement that the levies will increase costs for American manufacturers, “putting them at a disadvantage to their global competitors.”

“Ultimately, these tariffs will lead to higher costs for American businesses and consumers and fewer exports for American companies,” the chamber notes.

Manufacturing Optimism Drops in New Survey

The U.S. imports more than half the aluminum it needs, mostly from Canada, and the production capacity required to replace these imports does not exist domestically.

Connecticut’s critical manufacturing sector continues to feel the brunt of the administration’s trade policies, with the latest hikes expected to particularly impact the aerospace industry.

Canada was Connecticut’s largest supplier of steel and aluminum and derivative products in 2024, shipping $318.8 million in goods.

Mexico shipped $109.5 million, followed by China ($71.9 million), Denmark ($66.8 million), and Germany ($52 million).