US tariffs on steel and aluminum will affect millions of tons of imports, according to Bloomberg. The United States depends on foreign supplies to meet metal demand in construction, vehicle production, technology, and military equipment. Major sources of steel and aluminum imports include Canada, Mexico, and China.
Impact on US Steel and Aluminum Industry
In 2023, US steel consumption reached approximately 93 million tons, with net imports accounting for 13% of the demand. Aluminum consumption stood at 4 million tons, with imports making up 44% of the total. According to a Morgan Stanley study, Canada supplied 56% of US aluminum imports.
The US steel industry is recovering from a weak 2024, with steelmakers arguing that increased imports are squeezing profits and production. Former President Donald Trump advocated tariffs to boost domestic production. However, Morgan Stanley analysts warn that ramping up US steel production could take at least three years, making immediate self-sufficiency unlikely. As a result, tariffs on imported metals could drive up domestic prices.
New Tariff Measures and Global Response
On February 1, the US president ordered additional duties of 25% on steel and aluminum imports from Mexico and Canada and 10% on Chinese goods. Additionally, a 10% tariff will be imposed on Canadian energy products, including oil, gas, and electricity, effective February 4.
Canada responded with 25% retaliatory tariffs on US imports worth up to $155 billion, including steel and aluminum products, in two phases. Mexico’s President Claudia Sheinbaum directed the Ministry of Economy to impose countermeasures, while China’s Ministry of Commerce announced plans to file a WTO lawsuit against what it calls “illegal US practices.”
US Steel Imports and Market Trends
According to the American Iron and Steel Institute (AISI), US steelmakers increased rolled metal product imports by 3.7% in 2024 compared to 2023, reaching 22.5 million tons. Total steel imports, including rolled and semi-finished products, rose by 2.5% year-over-year to 28.86 million tons.
The top sources of US steel imports in 2024 were:
- Canada: 6.56 million tons
- Brazil: 4.49 million tons
- Mexico: 3.52 million tons
As the US enforces new trade measures, global trade tensions are likely to escalate, impacting supply chains and commodity markets.
