New US Tariffs on Steel & Aluminium Imports
President Donald Trump has issued a proclamation ordering a new 25% import tariff on all aluminium and steel entering the US. The new rules are set to take effect on Wednesday 12th March.
The new tariff supersedes the previous quota exemptions and arrangements. Existing exemptions for specific steel products that are not made in the US have also been abolished. Tariffs now also cover 'derivative products' such as fasteners and kitchenware; the only exemptions that remain are those on steel that has been melted and poured in the US but then further processed in another country.
The new import tariffs are primarily intended to target allies of the US, which includes the UK; the majority of other countries already had to pay a 25% tariff on steel and a 10% tariff on aluminium. Trump's proclamation mentioned the world's steadily-increasing excess capacity, which is projected to reach an unprecedented 630 million tonnes by 2026. It also cited concerns about the trans-shipment of steel from China, with the blanket measures designed to block these routes.
The proclamation claimed that existing quotas had proved to be ineffective, citing that steel imports from the UK, the EU, Australia and Japan had risen to 20.7% in 2024 from just 18.6% in 2020. Critics pointed out that this did not take into account the historically-low demand in 2020 due to the COVID pandemic. In fact, the UK exported 14% less steel to the US in 2024 than when tariffs were first introduced in 2018.
When asked why the 25% tariff had been applied to both steel and aluminium, Trump responded by saying: "So that everyone can understand exactly what it means. It’s 25% without exceptions or exemptions. That’s all countries, no matter where it comes from, all countries."
The aim of the new tariffs is to make imported aluminium and steel more expensive in the US, which is expected to 'invigorate domestic production and safeguard American jobs'. Economists have noted that the decision could have deep implications for trade relations around the world and is likely to trigger retaliatory measures.
One of the most likely effects of the new metal tariffs is that the price of raw materials will increase significantly. Supply chains may also be disrupted, adding further pressure to companies working in the steel and aluminium sectors.
All in all, it's going to be a challenging time going forward but here at BS Stainless we have overcome many challenges. We're confident that we'll overcome this one as well and we pledge to continue offering stainless steel materials and components of superlative quality at the very best prices possible.
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