By a man who set out to make America great again – and burned billions along the way.
It was one of those scenes that have become routine in Trump’s second term: a warehouse full of steel, patriotic music, workers in hard hats – and a president gripping the microphone like a Vegas entertainer. But what Donald Trump announced Friday at the U.S. Steel Mon Valley plant was no joke. It was an economic earthquake: steel tariffs - doubled to 50%. Aluminum? Also 50%. The measure is set to take effect Wednesday. The applause of the steelworkers still echoed through the hall – but on Wall Street, the trembling had already begun. Because what Trump is selling as a “blockbuster deal” is nothing less than a homegrown shock for many companies.
The steel industry cheers – but it's too small for big miracles
Admittedly - it was a nice tailwind for U.S. Steel. The stock rose 1.13% to 53.82 dollars. No surprise - when foreign competition is artificially made more expensive, the protectionist smiles. But U.S. Steel is not General Motors. And it’s certainly not Apple. The entire U.S. steel industry makes up less than 0.3% of GDP. As important as its growth may be for local regions like Pennsylvania, it can never offset the overall economic dents caused by this tariff policy.
Apple, Tesla & Co.: When aluminum suddenly becomes a luxury
Those holding their breath, however, are the core of American industry: tech, automotive, construction. Apple alone processes thousands of tons of aluminum every year - for iPhones, iPads, MacBooks. Most of it comes from Asia, Canada, or Europe. Now it gets more expensive. And that’s not just a footnote - it’s a direct challenge to the global supply chain. Tesla? Uses both aluminum and specialized steel - in multiple areas of vehicle construction. When prices rise, margins shrink - or the price for the customer explodes. Neither is good.
Dow, Nasdaq, S&P: The market says “no thanks”
The stock market reacted promptly - and coolly:
Dow Jones: –256 points (–0.6%)
Nasdaq: –200 points (–1.0%)
S&P 500: –0.7%
Weekly balance: All major indices lost more than 2%
This is not just a mild cough - it is a clear signal of how investors assess Trump’s steel gamble: highly risky, poorly thought out, maximum populism.
A calculation that doesn’t add up
The logic of the measure feels outdated: make imports expensive = strengthen domestic = create jobs. But it falls short. Because:
Around 25% of U.S. steel and over 40% of aluminum is imported. U.S. producers cannot fill this gap in the short term - not technologically, not in terms of capacity.
The result: price increases, bottlenecks, inflation - in an already strained market environment.
And it gets worse: higher prices act like a tax on investment. Companies delay projects, reduce their product range, cut back - or relocate abroad.
Trade relations: Goodnight, globalization Geopolitically, the decision is an affront. Canada, Brazil, Mexico, and South Korea - the four largest exporters of steel to the U.S. - are unlikely to be pleased. The EU is reportedly already considering a response - retaliatory tariffs on U.S. goods are not out of the question. Apple, Boeing, Caterpillar, and other U.S. brands could be the next to feel the impact.
In parallel, Trump spins the image: The involvement of Nippon Steel in U.S. Steel is supposed to be a “U.S.-controlled partnership,” secured by a “golden share” from the U.S. government. Sounds like a clever deal - but in legal and economic terms, it’s vague at best. Neither investors nor stakeholders know how it is structured. Transparency? Nowhere in sight.
Trump has fulfilled a promise – to steelworkers, to the patriots of the Rust Belt, to the nostalgics of old industry. But another generation will pay the price: companies operating in global value chains, consumers soon to face higher prices for cars and tech – and financial markets that flinched long before the first new tariff takes effect.
What remains is an economic paradox: a country protects itself from foreign steel - and ends up cutting into its own flesh. The policy is national - but the damage is global. Or, as an Apple engineer dryly tweeted:
“Our devices aren’t getting better - just more expensive. Thanks, Steel-America.”
And in the end, it will be American society itself that gets hit the hardest. You don’t need a business degree to see that. But maybe many will ask themselves why they didn’t act sooner. June 14, 2025 - Trump’s 79th birthday and the 250th anniversary of the U.S. Army - will show what this society is still capable of. On that day, the White House is calling for a massive military parade - but civil society is calling for a counter-march. Mass protests are planned across all 50 states – against tariffs, against isolationism, against a regime that produces only symbols but causes real destruction.
Because if that day passes without resistance, life in the U.S. is about to get very expensive. Because then they’re coming – the many, many billions in losses from a collapsing tourism industry.
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