The full reinstatement of Section 232 tariffs came just a week after the United States imposed a 25% tariff on all goods imported from Canada and Mexico. However, President Trump later signed an executive order exempting cars from these tariffs after appeals from major U.S. automakers that rely on cross-border supply chains.
Steel prices in the United States have been rising since the beginning of the year. Steel producers in the country have been able to raise their list prices as buyers expect increased costs and reduced supplies.
According to the American Iron and Steel Institute, imports account for 23% of finished steel consumption in the United States. Imports from Canada, the largest exporter to the United States, account for 6.3%.
Under the new system, Canada and Mexico will face the same punitive measures as all other steel producing countries. The International Steel Review stated, "They will join the list of countries that previously avoided at least part of the Section 232 tariffs due to free trade agreements, import quotas, or exemptions. It includes: Argentina; Australia; Brazil; the EU; Japan; South Korea; the United Kingdom; and Ukraine."
"In total, these countries accounted for 81.9% of the 26.2 million tons of steel imports to the United States in 2024. Imports from Canada, Mexico and Brazil alone accounted for 50.5% of this total."
EU consultations on retaliatory measures in the form of duties
In response to the application of 25% of US import duties, the European Commission today began consultations on its response. The Commission said that the US duties will affect a total of $26 billion of EU exports, which corresponds to about 5% of total exports of EU goods to the United States. She added: "Based on the current import flows, this will result in US importers having to pay up to 6 billion euros in additional import duties."
The measures proposed by the Commission include tariffs on a range of American exports, from boats to bourbon and motorcycles. Consultations on the measures, which will initially focus on U.S. exports to the EU worth about 18 billion euros, will end on March 26. The resulting measures will be applied from mid-April, the report says.
Canada and Mexico said they would impose retaliatory measures after March 4 imposed 25 percent duties on all exports to the United States from their domestic producers.
Canada has imposed duties on $30 billion worth of goods imported from the United States since March 4, and may impose additional duties on another $125 billion worth of imports from the United States after a 21—day consultation period.
