US tariffs on steel and aluminum imports of 25% come into effect

US tariffs of 25% on all imported steel and aluminum went into effect on March 12, accelerating the change in global trade rules.

The day before, at a business roundtable, US President Donald Trump said that the duties are forcing companies to invest in factories in the US, AP reports. According to him, the biggest gain will be if companies move to the United States and create jobs.

On March 11, Trump threatened to impose 50 percent tariffs on steel and aluminum from Canada, but decided to stay at 25 percent after Ontario suspended plans to introduce a surcharge on electricity sold to three US states.

While Trump’s tariffs, the AP notes, may help steel and aluminum mills in the US, they are likely to result in higher prices for manufacturers that use metals as raw materials.

According to the U.S. International Trade Administration, the largest steel exporters to the country are Canada, Mexico, Brazil, South Korea and Japan, with exports from Taiwan and Vietnam growing rapidly. Imports from China are only a small part of what the US buys. Canada accounts for the lion’s share of aluminum imports to the US market.

The European Commission, in turn, has announced that starting in April, the EU will impose counter-tariffs on €26 billion ($28 billion) worth of American goods in response to US duties on steel and aluminum. However, the bloc’s executive remains open to negotiations.

“The EC deplores the US decision to impose such duties, considering them unjustified, disruptive to transatlantic trade and harmful to businesses and consumers, often leading to higher prices,” the institution said in a statement.

It is noted that the EU countermeasures will be introduced in two stages. On April 1, 2025, those that were introduced in 2018 and 2020 and subsequently suspended will automatically come into force. The European Commission is also proposing a package of new countermeasures against US exports, which will come into force in mid-April after consultations with Member States and stakeholders.

“The countermeasures we are taking today are strong but proportionate. As the United States is applying tariffs worth $28 billion, we are responding with countermeasures worth €26 billion,” said EC President Ursula von der Leyen.

Industry associations are already responding to the situation. The day before, Assofermet, which represents Italian distributors of scrap, raw materials and steel products, expressed its concern about the impact of the measures. One of the main risks here is a potential “domino effect” – the redirection of Asian steel imports to the EU market. This would potentially destabilize European supply chains and put additional pressure on local producers and end users. Assofermet calls on the EU to reconsider its approach to trade protection.

UK Steel emphasized that the tariffs could not have come at a worse time for the UK steel industry, the Independent reports. The local steel industry is struggling with high energy costs and low domestic demand amid oversupply and an increasingly protectionist global environment.

Gareth Stace, CEO of UK Steel, said it is important that the British government not only continues its efforts to negotiate exemptions with the US, but also takes decisive action to strengthen trade protection.

As a reminder, 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.