Steel Industry Faces Continued Uncertainty Despite US Tariff Pause

Steel 

US Tariffs Delay Fails to Ease Global Steel Market Concerns

Despite the Trump administration’s 90-day pause on higher "reciprocal" import tariffs, uncertainty continues to weigh on the global steel industry. The delay, announced on April 9, prevents country-specific tariff rates of up to 50% from taking effect, but maintains a 10% blanket tariff for all 60 trade partners under the plan. China, however, faces a significantly higher 125% tariff rate due to retaliatory trade measures.

Impact on Steel Demand and Trade Relations

While steelmakers in Europe and Asia may find some relief, the 25% Section 232 tariffs on steel imports and automotive products remain unchanged. The higher cost of exporting vehicles to the US could suppress steel demand in those regions. Analysts suggest that market volatility will persist unless the tariff pause becomes permanent.

MEPS steel market analyst Jon Carruthers-Green highlighted the unpredictability of tariff policy as a major concern: “The arbitrary imposition and removal of tariffs create uncertainty, making long-term planning difficult for industries reliant on steel.”

US Steelmakers Benefit from Tariff Protections

Despite broader concerns, US steel producers have gained from the protectionist measures. Carruthers-Green noted that maintaining the 25% tariff on iron and steel products shields domestic producers from import competition.

MEPS reports indicate that rising protectionism has boosted profit margins for major US steelmakers, even as importers and manufacturers struggle with limited access to low-cost steel. Year-to-date, domestic carbon flat steel prices have surged over 40%, with forecasts predicting strong pricing in the first half of 2025. A decline is expected in the latter half of the year, though prices should remain above January levels by year-end.