US imposes 25% duty on all steel and aluminum imports

The new duties will come into force on March 12 this year

US President Donald Trump has ordered a 25 percent duty on all steel and aluminum imports into the country, with no exceptions or exemptions. This is stated in the relevant proclamation of the head of state published on the White House website.

In particular, the duties will apply to steel and aluminum imported from Canada, Brazil, Mexico, South Korea and other countries that have been supplying their products to the United States duty-free under exemptions. The new rates, according to the White House, will come into effect on March 12 this year.

As noted in the proclamation, total steel imports as a share of US consumption in 2024 reached almost 30%. In addition, the share of supplies from countries with which the United States has reached alternative agreements in total imports has increased significantly – from 74% in 2018 to 82% in 2024. At the same time, imports from countries subject to quantitative restrictions remain high, despite changing demand conditions in the US market and investments aimed at expanding the capabilities of local industry.

Later, Trump said that he might consider an exception for Australia, given the imports of American-made aircraft and the trade surplus with the country.

“The steel and aluminum tariffs 2.0 will put an end to foreign dumping, boost domestic production and secure our steel and aluminum industries as the backbone and pillar industries of America’s economic and national security,» Reuters quoted Trump’s trade adviser Peter Navarro.

Trump imposed the new tariffs under Section 232, which gives the US president broad powers to impose trade restrictions for national security reasons. This is the same mechanism he used in 2018.

Before the official introduction of the duties, a number of industry associations expressed their concerns. For example, Gunnar Gröbler, president of Germany’s WV Stahl, noted that the US president’s announcement of punitive tariffs on all steel imports hits the German and EU steel industries in several ways – and at the wrong time.

“The USA is the most important sales market for the European steel industry. Around one million tonnes of mostly special steel are exported to the USA from Germany alone every year. Around 20 percent of all steel exports from the EU go to the US market,” he said.

Gunnar Grybler called for cohesive and urgent EU action – a rapid and consistent adjustment of EU Safeguards to prevent import diversion to the bloc’s market and continued dialogue with the US on a sectoral agreement.

Even before the release of Trump’s proclamation, UK Steel expressed concerns about the redirection of excess steel capacity to other markets, such as the UK, and noted the need to introduce strong trade barriers and accelerate the introduction of its own CBAM as an additional layer of protection.
According to UK Steel CEO Gareth Stace, the US is the second-largest export market for British steelmakers after the EU.

“At a time of shrinking demand and high costs, rising protectionism globally, particularly in the US, will stifle our exports and damage over £400 million worth of the steel sector’s contribution to the UK’s balance of trade,” he explained.

As GMK Center reported earlier, in 2024, US steelmakers increased imports of rolled steel by 3.7% compared to 2023, to 22.5 million tons. Total steel imports (rolled products and semi-finished products) increased by 2.5% y/y – to 28.86 million tons over the year.