US President Donald Trump has announced plans to impose a 25% tariff on all steel and aluminum imports, as well as mutual tariffs on countries that levelle US goods obligations.
On Monday, at a signature ceremony in the oval office, Trump announced that tariffs on foreign steel and aluminum would be imposed “without exceptions or exemptions.”
Customs duties are set to take effect on March 12th.
Who is the top supplier of steel to the US?
Steel is an important material primarily used in the construction, manufacturing, transportation and energy sectors due to its strength, durability and versatility.
Approximately a quarter of all steel used in the US is imported.
Canada, Brazil and Mexico are the top three steel suppliers in the US. Between March 2024 and January 2025, the International Trade Bureau provided about half (49%) of steel imports for domestic consumption.
During that period, Canada supplies 22% (5.5 million tons) of 25 million tons of steel imported into the US, followed by Brazil at 15% (3.74 million tons) and Mexico at 12% (2.9 million tons). Supplied.
South Korea, Vietnam, Japan, Germany, Taiwan, Netherlands and China, together as the remaining top ten steel providers, accounted for 30% of US steel imports.
Who is the top supplier of aluminum to the US?
Canada is the largest supplier of aluminum for the US. Between March 2024 and January 2025, almost 40% of US imports totaled nearly 3 million tonnes, according to the International Trade Agency.
The United Arab Emirates, China, South Korea and Bahrain are, after Canada, supplementing the top five aluminium suppliers in the US.
Because it is a lightweight metal, aluminum is widely used in the automotive and aerospace industries. It is also commonly used in packaging, especially for food and beverages, to maintain its ability to maintain content and recyclability.
The US relies on importing aluminum, with about half of the aluminum used nationwide imported.
What are tariffs and how do they work?
Tariffs are government-imposed taxes on imported goods and services and are paid by businesses that bring them into the country.
Tariffs designed to protect domestic industries often draw out consumer costs by making foreign products more expensive and potentially reducing demand.
President Trump has said he will implement tariffs on a variety of imports to protect US industries, reduce trade imbalances and promote domestic manufacturing.
How did Trump’s first-term tariffs have had on our steel?
In March 2018, Trump imposed a 25% tariff on steel and a 10% on aluminum. The idea behind the taxation was to reduce dependence on foreign steel and boost domestic production.
The market initially responded by a surge in US steel prices and a decline in low-priced imports, increasing profits for domestic companies. However, due to rising US production, there was too much steel in the domestic market. By the end of 2019, steel prices had fallen more than 40% due to retaliatory tariffs, primarily from US trading partners, and weaker consumption, particularly in the auto manufacturing and construction sector.
How will this affect the US steel and aluminum industry?
Steel and aluminum are important materials in the construction and automotive industry and are used in the manufacture of machinery, household durable goods and electronic equipment.
If tariffs are in place, the impact on metal trade could be large, according to a report by the Metal Research Team at the London Stock Exchange Group (LSEG).
Tariffs can increase manufacturer costs and disrupt established supply chains. US manufacturers may look to domestic producers to meet demand, but they will likely face higher prices.
How will tariffs affect China?
China controls the global steel market, is the world’s largest producer and accounts for more than half of global production. As a result, the global market is flooding due to inexpensive Chinese steel exports.
Although it is not a large exporter to the US, China could be affected by Chinese steel and aluminum machining.
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