Newly doubled US steel import tariffs led to mixed reactions from market participants, with some questioning the effectiveness of raising the tariffs further in light of steadily declining import volumes and stagnant demand.
President Donald Trump late on 30 May announced the [doubling of section 232 steel import tariffs][https://direct.argusmedia.com/article/2694372) to 50pc, effective 4 June. Trump on 12 March imposed global 25pc section 232 tariffs, eliminating all exemptions and tariff-rate quotas. The White House has yet to release a fact sheet on the new tariffs.
Most buyers and importers were still digesting the announcement on Monday, with one reporting "tariff fatigue" — a skepticism of the policy and its implementation — and others saying buyer demand could climb as they work to get ahead of potential mill price increases, should the tariffs take effect as announced.
Independently of the tariffs, demand for steel — both import and domestic — has been stagnant for much of this year on economic uncertainty and lack of public investment in steel-intensive projects.
Despite the steep discount to domestic pricing, import volumes have not attracted much attention, as the volatility in the US's trade policy since Trump's election has led many buyers to be apprehensive about committing to overseas tons. Demand has fallen to a point where some importers are also hesitant to offer spot tons not available at the port already — a situation which could be exacerbated by the doubled import tariffs. Importers of record with backlogs and inbound steel in transit currently could be liable for the extra 25pc charge on steel duties not already paid for before 4 June.
Argus-assessed hot-rolled coil (HRC) import prices have hovered at $800/short ton (st) ddp Houston since rising to that level on 11 March, the day before the tariffs were implemented. Import prices fell to $780/st in the 27 May assessment on sustained weak demand. US mills throughout the first quarter increased domestic pricing ahead of the 12 March tariff implementation date, culminating in a $950/st peak for ex-works US HRC on 18 March, which has since fallen to $881.25/st.
Dwindling supply at the ports has also done little to either spur demand or support prices.
Importers in January and February brought in 4.83mn metric tonnes (t) of all steel — a 6pc jump from the same period in 2024, according to the US Census Bureau — amid reports of stocking up on material ahead of the imposition of the tariffs. Steel imports in March and April were 14pc lower than year-earlier levels at 4.15mn t. May imports fell further to 1.84mn t — a 29pc drop from May 2024, according to import licensing data, which could vary from actual results.
