US President Donald Trump has announced plans to impose 25% tariffs on all steel and aluminium imports, valued at about $50bn in 2024. The top suppliers of steel and aluminium to the US are Canada, Brazil, and Mexico, which together accounted for 49% of steel imports and nearly 40% of aluminium imports between March 2024 and January 2025.
The tariffs will have a significant impact on the metal trade, potentially raising costs for manufacturers and disrupting established supply chains. The US steel industry is already dependent on domestic production, with increased output leading to too much steel in domestic markets. If the tariffs are implemented, similar trends may occur, driving up construction costs and affecting industries such as car-making.
The affected countries, including Canada and Mexico, have responded by levelling duties on US goods, sparking a potential trade war. China, which dominates the global steel market, is also likely to be impacted due to the processing of Chinese steel and aluminium in other countries.
Tariffs could lead to increased costs for consumers and potentially reduce demand for foreign products. The proposed 25% rate would significantly raise costs for US manufacturers relying on imported aluminium, while the exemption of key trade partners Canada and Mexico may not be repeated this time around.
Source: https://www.aljazeera.com/news/2025/2/11/who-sells-the-most-steel-and-aluminium-to-the-us-and-who-is-facing-tariffs