US duties on steel and aluminum will affect millions of tons of imports

US tariffs on steel and aluminum will affect millions of tons of imports, Bloomberg reports. The United States relies on foreign supplies to meet the demand for metals used in the construction and production of vehicles, technology and military equipment. One of the main sources of steel and aluminum imports is from its closest trading partners.

In 2023, steel consumption in the United States amounted to about 93 million tons, with net imports accounting for 13% of this demand. In terms of aluminum, the country consumed 4 million tons in the same period, with net imports accounting for 44% of the total. According to a Morgan Stanley study, Canada accounted for 56% of aluminum imports.

Currently, the US steel industry is coming out of a bad year in 2024, and US steelmakers say that the new import growth is hurting profits and production.

Trump has said that tariffs could help US companies increase domestic production. However, according to Morgan Stanley, at least for the steel industry, the construction of new facilities will not be fast. The bank’s analysts believe that it could take three or more years to build and launch new facilities. Consequently, any import tariffs applied to metals or mining products are likely to lead to higher domestic prices for their local buyers.

Tariffs on aluminum and steel were among the first to be introduced during the first presidency of Donald Trump.

On February 1, the US president ordered additional duties of 25% on goods imported from Mexico and Canada, and additional duties of 10% on Chinese goods. At the same time, duties on Canadian energy products will be 10% and will apply to the entire energy sector of the country, including oil, gas and electricity. The duties will take effect on February 4.

In response, Canada announced the introduction of retaliatory duties of 25% on U.S. imports worth up to $155 billion, including steel and aluminum products, in two stages. The government will also consider additional measures.

In turn, Mexican President Claudia Sheinbaum instructed the Ministry of Economy to implement a response that includes retaliatory tariffs and other measures to protect the country’s interests. China’s Ministry of Commerce has announced that it will file a lawsuit with the World Trade Organization over the “illegal practices of the United States” and will take measures to protect its rights and interests.

As GMK Center reported earlier, US steelmakers increased imports of rolled metal products by 3.7% in 2024 compared to 2023, up to 22.5 million tons. This is evidenced by data from the American Iron and Steel Institute (AISI). Total steel imports (rolled products and semi-finished products) increased by 2.5% y/y – to 28.86 million tons over the year.

The main sources of steel imports to the United States in 2024 are Canada, Brazil and Mexico – 6.56 million tons, 4.49 million tons and 3.52 million tons, respectively.