President Donald Trump doubled the tariff rate on imports of steel and aluminum coming from every nation except the United Kingdom to 50%, effective June 4. The U.K. rate remains at 25%.

The move stands to raise costs associated with importing promotional products that contain the metals, including drinkware like stainless-steel tumblers, pens with aluminum, display stands with steel frames and outdoor-focused products like brandable camping chairs, among others, promo executives indicated.

Imported stainless-steel drinkware is among the products that are likely to become more expensive as a result of the new tariffs.

Those importing cost increases are poised to compel further price hikes on affected promo products, as well as items containing steel and aluminum across industries.

“Products, or product components, that are functionally reliant on these metals are going to become more expensive in the coming months – in some cases, much more expensive,” said Chris Anderson, CEO of Counselor Top 40 supplier HPG (asi/61966) and a member of Counselor’s Power 50 list of promo’s most influential people.

Demand for affected products could potentially degrade in the months ahead, some promo executives said.

“Products, or product components, that are functionally reliant on these metals are going to become more expensive in the coming months.” Chris Anderson, HPG (asi/61966)

“As it pertains to the promo industry, where there are plausible substitutions available – say, a plastic water bottle or a plastic pen – you will likely see demand shifts to these lower cost alternatives, while keeping the spend within the broader category,” Anderson said.

He continued: “However, where no such alternatives exist, in the face of tariff-driven price increases, we are likely going to see a reduction in overall demand, and total spend shifting away from the respective categories.”

At least 60% of promo suppliers had increased prices through early May in 2025, with tariff initiatives from the White House the primary factor behind the hikes.

Nearly 11%
Percentage of promo industry sales accounted for by drinkware, making it the market’s top hard goods category and second-bestselling product category overall.(Counselor State of the Industry)

Canadian Impacts

The heightened steel and aluminum levies have potential to impact the economies of Mexico and Canada, the latter of which is the leading exporter of steel to the United States. If there are negative ripple effects in the Canadian economy, for instance, that could diminish demand for promotional products in the nation.

Catherine Cobden, president and CEO of the Canadian Steel Producers Association (CSPA), said in a statement that the increased tariff rate “essentially closes the U.S. market to our domestic industry for half its production.” She added that the tariffs will create “mass disruptions” across U.S.-Canadian integrated steel supply chains.

“This latest announcement from the Trump Administration is a further blow to Canadian steel that will have unrecoverable consequences.” Catherine Cobden, CSPA

“Canadian steel is a strategic sector that is key to our economic and national security,” Cobden said. “Our members fuel countless sectors like energy, automotives, manufacturing and [defense], which create hundreds of thousands of jobs across Canada. This latest announcement from the Trump Administration is a further blow to Canadian steel that will have unrecoverable consequences.”

Others in the Canadian steel industry offered a similar perspective.

“A 50% tariff would completely shut us out of the U.S. market,” said Marty Warren, national director of the United Steelworkers for Canada. “This isn’t trade policy – it’s a direct attack on Canadian industries and workers. Thousands of Canadian jobs are on the line and communities that rely on steel and aluminum are being put at risk. Canada needs to respond immediately and decisively to defend workers.”

Canada is reportedly preparing reprisals if ongoing trade negotiations with the U.S. prove unfruitful.

The Order & the President’s Reasoning

Trump hiked the levies in what he said is an effort to safeguard the United States’ domestic steel industry and enhance national security.

“The increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market and thereby undercut the competitiveness of the United States steel and aluminum industries,” the president wrote in an executive order announcing the tariffs.

The American Iron and Steel Institute offered high praise to the president for the intensified tariffs. The trade group’s president, Kevin Dempsey, accused China and other nations of oversupplying the global marketplace with steel. That has kneecapped U.S. steelmakers’ ability to compete, threatening the industry’s existence, steel tariff proponents said.

“The increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States market.” President Donald Trump

“Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers,” Dempsey said.

Trump’s order states the increased steel and aluminum tariffs apply to “steel articles and derivative steel articles, and aluminum articles and derivative aluminum articles” as detailed in Chapter 73 and Chapter 76 of the U.S.’ Harmonized Tariff Schedule.

His order appears to indicate that the steel and aluminum rate will be applied to the components of a product that contain the metals. The remainder of the product will be tariffed at a rate established by the levy applicable to the country of origin and potentially other applicable tariffs.

It can get a bit complicated. In the case of stainless-steel drinkware coming from China, for instance, the 50% tariff would apply to the steel components, while a 10% baseline import tariff would apply to non-steel parts, said Gretchen Blough, customs brokerage manager with Logistics Plus Inc. Additionally, a 20% tariff – which Trump put in place over concerns about fentanyl entering the United States from China – will apply to the total value of the product, while Section 301 tariffs from Trump’s first term would also apply to the total value of the product. A base/commodity tariff of 2% would also apply to the whole value of the tumbler, Blough said.

Trump has directed U.S. Customs and Border Protection to issue guidance that mandates strict compliance for declaring steel and aluminum content. “Importers who submit underreported declarations may be subject to severe consequences, including but not limited to significant monetary penalties, loss of import privileges, and criminal liability, consistent with United States law,” the president’s executive order said.

Trump left the 25% rate in place on the United Kingdom, as the nations agreed to the “Economic Prosperity Deal” on May 8. The White House could ultimately remove the 25% rate on U.K. steel and aluminum if trade relations go well, but Trump also said the rate could increase to 50% if he “determines that the United Kingdom has not complied with relevant aspects of the EPD.”

The European Union, of which the United Kingdom is no longer a part, has threatened countermeasures over Trump’s heighted steel and aluminum tariffs. “If no mutually acceptable solution is reached, both existing and additional EU measures will automatically take effect on 14 July – or earlier, if circumstances require,” a spokesperson said. 

Mexico is also threatening retaliatory action.