Dive brief:
- The amount of foreign steel entering the United States rose nearly 6% in April from the previous month, but remains down 30% on the year as Section 232 tariffs continue to disrupt trade flows and support domestic steel production.
- Total imports for the month have been reached 1.87 million net tonsdriven by increased imports of sheet metal, metal coatings, rebar and other goods, according to recent Census Bureau data compiled by the American Iron and Steel Institute. This included 1.38 million net tonnes of finished steel.
- The largest supplier countries in April were South Korea, Canada, Brazil, Mexico and Vietnam, in that order, according to census data. From January to April, imports totaled 6.97 million net tonnes compared to 9.89 million net tonnes in the same period a year earlier.
Diving knowledge:
The sharp drop in steel imports indicates the Trump administration’s Section 232 tariffs on foreign metals “are working as intended,” Brandon Farris, executive vice president of the Association of Steel Manufacturers, said in an emailed statement. Meanwhile, domestic steel production has increased by nearly 5 million tons since early 2025.
“This is good for American workers, their families and their communities,” Farris said.
Shortly after taking office, President Donald Trump imposed Section 232 tariffs on aluminum, steel and related products on February 10, 2025. He later increased those tariffs to 50% on June 3, 2025, before adding copper to the list and making a series of adjustments, citing efforts to address “threats to national security” and imports low-priced foreign ones.
Earlier this week, Trump signed a proclamation that lower Section 232 tariffs in agricultural and industrial equipment and machinery from 25% to 15%. It also made international companies eligible for a 10% tariff if their product was made primarily of US steel or aluminum.
In addition to the tariffs, Morningstar analyst Seth Goldstein said disruptions from the Iran war are forcing companies to take on additional costs, such as fuel surcharges, and affecting their sourcing strategies.
“We could see some importers of steel and other raw materials wanting to wait for a resolution, wait until the supply chains normalize, in order not to buy, essentially, inventory during what could be an absorption price for the year,” Goldstein said.
At the same time, national production increases. American manufacturers have processed 38.93 million net tons of crude steel since January, up 6.8% from the same period a year ago, according to recent preliminary AISI data ending May 30. US Steel, Century Aluminum and Hyundai Steel are moving forward with plans to increase domestic steelmaking capacity.
Although the US overtook Japan to become the world’s third largest steel producer last year, Farris said foreign competition continues.
“Some foreign steel producers are absorbing the tariff costs to maintain their position in the US market, which underscores the need for continued vigilance to enforce trade rules,” he said.
