Trump's steel and aluminum tariffs prove costly for U.S. economy, think tank finds

According to a new report from the Montreal Economic Institute, the tariffs imposed by Donald Trump on steel and aluminum have caused a sharp price shock in the United States, with steel up 33.9% and aluminum up 58% since February 2025. By contrast, Canadian price increases were only about one percent for steel and 26% for aluminum. Over a 19-month period, U.S. steel production grew 7.6% and employment rose 0.7%, while aluminum production slipped 0.1% and jobs grew just 0.6%.

The study says higher input costs have pushed up prices for a wide range of goods, from cars to aircraft, and have made investors wary of expanding U.S. facilities. It notes that the primary beneficiaries of the tariffs are the U.S. government, which collects higher duties, and incumbent domestic producers. The report also highlights that external factors, such as disruptions in the Strait of Hormuz, have compounded aluminum price pressures.