Trump 2.0 Week 20 In Review: Discussing The Steel & Aluminum Tariff Increase, Upcoming U.S.-China Trade Talks, and More

While Elon Musk’s public feud with President Trump has been hogging the spotlight over the last few days, there certainly was no shortage of new tariff and trade war related developments this week.

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In this week’s recap we cover:

• The doubling of the steel & aluminum tariffs

• Upcoming U.S.-China Trade Talks on June 9th

• U.S.-EU negotiation update

• New investments in U.S. manufacturing

• Key dates to watch

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We also briefly discuss how partnering with Veryable can help businesses turn disruption into opportunity and stay ahead of the curve.

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Trump Raises Tariff on Imported Steel & Aluminum From 25-50%

Last Friday while speaking at a US steel facility in Pennsylvania, President Trump announced that he would increase tariffs on imported steel & aluminum from 25% to 50% in an effort to protect American steelworkers and bolster the domestic steel industry. He also noted that the 25% tariff wouldn’t be enough to boost the sector, and that industry executives had actually preferred this 50% rate over a proposed 40%.

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The 50% tariff went into effect on Wednesday June 4th. The UK however is exempted for now due to its ongoing negotiations with the U.S., and its steel & aluminum products will still be tariffed at 25% for the time being. With that being said, this exemption is temporary, and according to the White House, the rate is subject to "possible changes or quotas starting July 9, 2025, depending on the status of the U.S.-UK Economic Prosperity Deal.”

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While this latest move is creating cause for concern in certain sectors, this is undoubtedly a major win for steel & aluminum producers, and moves the U.S. one step closer to once again being the world’s top producer. For context, the U.S. was the world's largest producer of primary aluminum until approximately 2000. For steel, the U.S. was the leading producer until the 1970s.

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Unsurprisingly, Canada and Mexico have both strongly criticized this move, with Canadian Prime Minister Mark Carney condemning the tariffs as “unjustified” and “illegal,” and Mexican President Claudia Sheinbaum vowing to consider countermeasures if tariff relief is not granted. For now however, no retaliatory measures have been announced, but this could very well change in the next week, as it’s unlikely that Trump will offer any exemptions. With Canada and Mexico providing a significant portion of the U.S. steel and aluminum supply, any exemptions granted would essentially defeat the purpose of this latest tariff increase.

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Upcoming U.S. - China Trade Talks On June 9th

Following the Geneva talks last month, U.S. officials expected China to ease export restrictions on rare earth minerals, which had been imposed in April in retaliation against Trump’s “reciprocal” tariffs on Chinese goods. When they failed to lift the restrictions, Trump accused China via TruthSocial of violating the recent trade agreement. In response, the Chinese Ministry of Commerce rebuked Trump’s claims, and instead accused the U.S. of breaking the trade agreement, stating that the U.S. has introduced discriminatory restrictions, including new guidelines on AI chip export controls, curbs on chip design software sales to China, and the withdrawal of Chinese student visas.

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This recent development led many to believe that tensions between the two countries were re-escalating. On Thursday however, Trump and Xi spoke together on the phone, the first direct communication between the two leaders in Trump’s second term. Afterward, Trump said the call lasted about 90 minutes, but provided few details about it other than that it focused on trade. He did indicate via a TruthSocial post however that a meeting will be held "shortly" between the two countries.

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UPDATE: At 1:30PM CST via a TruthSocial Post, Trump announced that Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and U.S. Trade Representative Jamieson Greer will meet with Chinese representatives on Monday, June 9 in London. “The meeting should go very well,” says Trump in a Truth Social post.

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Note*: As of now, Trump and Xi still plan on meeting face-to-face in the near future, although the timing and location has not yet been revealed.

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U.S. and EU Continue Talks with Some Progress, Although No Final Agreement Reached

On Wednesday, the EU’s top trade negotiator, Maroš Šefčovič, met with U.S. trade representative Jamieson Greer in Paris on the sidelines of a meeting of the Organization for Economic Cooperation and Development (OECD). Afterwards, both sides claimed that progress had been made, with Greer stating “I am pleased that negotiations are advancing quickly,” and also that “EU negotiators showed a willingness to work with us to find a concrete way forward to achieve reciprocal trade. I look forward to continued constructive engagement in the coming days and weeks.”

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With that being said, no breakthrough has been achieved, and there’s still a long way to go before a comprehensive agreement is reached. The core issues include the U.S. trade deficit with the EU, tariffs on imported cars, and the recent U.S. steel tariffs. The EU has recently proposed a "zero for zero" deal—eliminating tariffs on industrial goods, including autos—which the U.S. has rejected. The EU also indicated readiness to impose countermeasures if negotiations fail, such as increasing imports of natural gas and defense equipment. Other major sticking points include the EU’s value-added tax (VAT) and food safety standards, which the U.S. regards as trade barriers. Both sides are wary of concessions on these issues, reflecting longstanding disagreements over regulatory standards and protectionism.

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India-U.S. Talks Extended Into Next Week

Trade negotiations between India and the United States have been extended into next week as both sides work to resolve disagreements over tariffs in the agriculture and automobile sectors. For context, India has resisted U.S. demands to open its agricultural and dairy markets, citing concerns over the impact on small farmers. The talks, led by USTR officials and India’s chief negotiator Rajesh Agrawal, are focused on improving market access, reducing tariffs, and strengthening supply chains. While they were initially planned to wrap up on Friday, the talks will now continue through Monday and Tuesday. Overall, these efforts aim to reach an interim trade agreement before the July 9 deadline, part of a broader plan to finalize a bilateral pact by fall 2025 and double bilateral trade to $500 billion by 2030.

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New Investments in U.S. Manufacturing

Since the start of Trump’s second term, more than 60 major companies have announced significant investments in U.S. manufacturing. Below are some of the most notable recent announcements.

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GlobalFoundries Announces $16B Investment in U.S. Manufacturing

On Wednesday June 4th, GlobalFoundries, the largest contract chipmaker in the U.S., announced a significant investment of USD 16 billion to expand its domestic semiconductor manufacturing capabilities, with USD 13 billion allocated to upgrading existing facilities in New York and Vermont, and USD 3 billion dedicated to research in advanced technologies such as chip packaging, silicon photonics, and gallium nitride (GaN).

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This strategic move aims to meet the soaring demand driven by artificial intelligence, high-performance datacenters, and AI-enabled devices. GF partners with major companies such as Apple, SpaceX, AMD, Qualcomm, NXP, and GM, supporting their efforts to reshore semiconductor production to the U.S. and diversify supply chains, highlighting GF’s role as a trusted supplier vital to U.S. supply chain security.

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Clarios Plans $1B Plant To Shore Up US Critical Mineral Supply

Clarios, a U.S.-based global manufacturer and recycler of low-voltage batteries, recently announced plans to invest up to $1 billion in building a critical minerals processing and recovery plant in the United States. This project aligns with the Trump administration’s efforts to strengthen the domestic metals supply chain and addresses challenges posed by China's export ban on critical minerals like antimony, which is essential for battery production. Currently in discussions with officials from Indiana, Texas, and Utah, the facility will extract antimony from used batteries collected nationwide, boosting U.S. battery manufacturing capacity and reducing dependence on foreign sources. This initiative is part of Clarios’s broader $6 billion U.S. energy manufacturing plan, which includes $1.9 billion dedicated to critical minerals processing and recovery.

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Pelsan Tekstil to Invest $82.6M in First U.S. Facility

Pelsan Tekstil A.S., a global leader in breathable film technologies for hygiene and medical sectors, is investing $82.6 million to establish its first U.S. production facility in Goldsboro, North Carolina. The new plant will create 216 jobs with an average salary surpassing the county’s current average wage. Founded in 2006 as a subsidiary of the Hassan Group, Pelsan is renowned for its advanced breathable polyethylene films, serving critical applications in healthcare, hygiene, and insulation. The facility aims to meet rising demand across North America for these specialized materials, supporting the company's growth and innovation efforts.

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Over the course of 12 years, the project is projected to boost North Carolina’s economy by over $719.5 million. Supported by local educational institutions and economic development organizations, this announcement underscores North Carolina’s growing role as a hub for advanced polymer manufacturing, and strengthens the state’s presence in critical sectors like healthcare and hygiene.

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Rolls-Royce to Invest $24M

Rolls-Royce has recently announced a $24 million investment to significantly expand its manufacturing capacity in the United States, including the construction of a new 250,000-square-foot Logistics Operations Centre (LOC) in Mankato, Minnesota. This facility will enable the company to more than double production of its mtu Series 4000 generator sets and meet the soaring demand driven by the rapidly expanding data center industry in the U.S., which hosts over half of the world's hyperscale data centers. For context, sales of power generation products for the data center segment grew almost 50% last year. Overall, The investment is expected to create over 100 new jobs and increase production at the Minnesota plant by more than 120% by 2026, with additional growth anticipated as the energy infrastructure continues to evolve.

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Key Dates to Watch in June and July

While things are highly uncertain right now, there are some upcoming dates in which more clarity may be provided on the path of tariff rates.

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Here's a few to watch:

• June 9: The deadline for the Trump administration to respond to the appeals court. This is also the same day that U.S. and Chinese officials will meet in London for trade talks.

• June 15-17: Trump will attend the annual G7 Leaders' Summit in Alberta, Canada. Tariffs are expected to be a major topic of discussion.

• July 8: "Liberation Day" tariffs are scheduled to resume following the 90-day pause, potentially affecting imports from multiple countries.

• July 9: The deadline for the US and the EU to negotiate a trade agreement. If no deal is reached, the US will impose an across-the-board 50% tariff on EU imports.

• July 14: The EU's 90-day pause on its own retaliatory tariffs to end.

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Navigating Uncertainty With Operational Agility

In today’s fast-changing environment, agility isn’t just a competitive advantage — it’s a necessity. Veryable provides the tools to turn agility from a concept into a practical reality. By leveraging our vetted, flexible workforce, businesses gain the ability to scale operations up or down within days and respond swiftly to demand surges or sudden slowdowns. This adaptability empowers proactive companies to seize opportunities others are too slow to pursue, all while effectively limiting risk.

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Additionally, if your organization is looking to shift production back to the U.S. from tariffed regions, Veryable can help accelerate that transition. Whether expanding existing facilities or launching new ones, our solution enables faster ramp-up times.

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As Ohio Region VP of Operations Austin Walker highlights in a recent blog, many U.S. factories operate at only a fraction of their capacity. With the help of Veryable,  manufacturers can significantly boost output without hefty capital investments by implementing third and overnight shifts and upskilling existing employees.

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For more information, check out the resources below or contact us.

• Blog: The Reshoring Reckoning - Why American Manufacturing Can’t Afford to Wait This One Out

• Blog: The Pressure That Creates Progress - Why Those Who Move First Win the Most

• New Facility Launch Case Study

• RTIC Outdoors Stands Up New Production Lines and Shifts With Veryable

• Blog: Revolutionize Your Overnight Operations With On-Demand Labor

• Blog: Creativity Over Capital - Addressing The Skilled Labor Gap

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U.S. Manufacturing Today Podcast

Featuring interviews with business leaders and industry experts, on this podcast we cover the latest shifts affecting the U.S. manufacturing & distribution sectors - what is changing, what is happening, and how it will impact your business.

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In this week’s episode, host Matt Horine was joined by McKenzie Reed, Co-Owner and President of CLN of South Florida, Inc, a leading manufacturer of CNC machines, router tables, and more. In addition to sharing his journey from mechanical engineer to acquiring CLN, McKenzie discusses how the company is playing a vital role in the reshoring and Made in America movements.

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He also discusses:

• How the increase in domestic RFQ's they’ve been seeing indicates growing confidence in U.S. manufacturing

• The paramount importance of reliable industrial equipment for operational success

• The strategic value of local support and world class customer service

• How to manage supply chain uncertainty and prepare for future growth

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You can find this podcast on our website, Spotify, Apple, YouTube, and PocketCasts.

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Additional Resources

For more insights on the developments under Trump 2.0, be sure to visit our “Navigating Trump 2.0” page. There, you’ll find comprehensive information on recent & potential future changes, and a collection of articles offering guidance for manufacturers and distributors on how to win in this uncertain environment.