US President Donald Trump's decision to double tariffs on steel and aluminium imports to 50 per cent that took effect on Wednesday, June 4, is sending shocks across global metal markets, including Kenya.
On Wednesday, President Trump signed a policy order doubling tariffs on steel and aluminium imports, a move that pushes up import taxes on the metals, which are used in everything from cars to canned food.
According to Trump, the tariffs, which are already in effect, are aimed at securing the future of the American steel industry.
''Protecting our steel and aluminium industries is a must. We are going to be imposing a 25 per cent increase. We're going to bring it from 25 per cent to 50 per cent of the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States. Nobody's going to get around that,'' President Trump said.
While Kenya exports only a small portion of its steel and aluminium to the US, the economic fallout from this policy could affect local traders, manufacturers, and infrastructure projects reliant on imported metals.
Kenyan businesses that source steel and aluminum from international markets, especially those directly affected by the tarriffs increase pose a risk of facing higher prices due to global supply chain disruptions.
Construction firms, automobile manufacturers, and metal suppliers fear that the rising cost of raw materials could lead to increased expenses, which may eventually trickle down to consumers.
Though relatively small, Kenya's aluminium exports to the US may be affected. According to trade data, in 2024, Kenya's aluminium exports to the US were valued at Ksh950 million, a significant increase compared to 2022.
A growth signalling stronger trade relations and higher demand for Kenyan aluminium in the US market, which may now be threatened by the new tariffs.
Kenyan construction firms, which use imported steel and aluminum for large-scale projects, may find budget constraints creeping in as global prices fluctuate.
With major infrastructure developments, including roads, bridges, and skyscrapers, underway, any increase in material costs could slow progress or inflate overall project budgets.
Already, Trump's move has shaken the metal industry, with stakeholders and partners meeting with the US government to negotiate and avoid the levies. UK Trade Secretary Jonathan Reynolds met Greer on Tuesday to try and avert fresh tariff hikes on steel and aluminium.
