The 50% tariff that the United States imposed on steel and aluminum imports in June 2025 has affected trade flows, led to higher prices and stimulated new investments. This is the first part of a three-part series that examines the consequences a year later.
When U.
S. President Donald Trump imposed 50% tariffs on steel and aluminum imports in June 2025, officials said the new duties would revive the country's manufacturing base, leveling the playing field for domestic producers who had been undermined by low-cost imports.
A year later, American manufacturers began to reap the benefits of the tariffs. Steel imports declined sharply, allowing domestic prices to exceed world prices. Production and capacity utilization in the United States gradually increased as imports declined, despite virtually unchanged demand.
But the promised manufacturing boom for steel consumers has not yet arrived. Tariffs have increased the cost of raw materials in some processing industries, which has reduced their profitability.
"Production is growing and the industry is in a better position than it was 18 months ago," said Thiago Vespoli, senior analyst at consulting firm Wood Mackenzie, in an interview with Platts. "But the increase in production has been gradual, reflecting the realities of new capacity creation, and the broader manufacturing sector has yet to demonstrate job growth, which may be directly related to steel tariffs."
Higher costs for end users of steel
The iron and steel producer price index calculated by the U.
S. Bureau of Labor Statistics rose by 10.4% between April 2025 and April 2026, while the steel mill product price index rose by 13.3%. Both are major raw materials for the construction and automotive sectors, which accounted for 46% of net steel shipments in 2025, according to the U.
S. Geological Survey.
According to Zach Fritz, an economist at tr, until Trump's tariff went into effect, the industry's production costs had remained relatively unchanged since 2023.The ade group unites builders and contractors.
"Higher raw material prices mean higher construction costs, which means fewer projects are being shelved," Fritz said in an interview with Platts. "I think this was one of the reasons that the construction costs of non-residential buildings have been in decline for some time."
According to the Census Bureau, construction costs for non-residential buildings in the United States peaked at $791 billion in December 2023. In March, it was reported that expenses amounted to $729.3 billion, which is 2.1% less than in March 2025.
Decline
