Steel imports to the United States will not be subject to additional tariffs under new reciprocal rules unveiled by President Donald Trump.
She was on the list of goods – including copper, pharmaceuticals, semiconductors, and some important minerals - that will be exempt from the new country-specific tariffs, which will be fully implemented from April 9th*. However, due to the recent revision of section 232 of the regulations, steel, along with vehicle imports, continues to be subject to its own 25% import duties in the United States.
Although the steel sector is avoiding further direct tariffs, steel producers around the world will suffer from their impact on end users. This will further reduce the demand for steel in countries where producers are already facing oversupply and increasingly low profit margins.
US tariffs will lead to a reduction in exports of "almost all manufactured goods"’
Laura Hodges, an analyst of the American steel market and a member of the European Parliament, said: "The tariffs announced yesterday do not directly apply to the U.
S. steel markets. However, the increase in steel prices as a result of the introduction of automobile tariffs, effective from April 2, will be felt, especially in the near future. Currently, the United States imports almost 50% of its cars. In the near future, car production may be expanded and production facilities resumed, which will lead to an increase in domestic demand for steel and its prices.
"On the other hand, reciprocal tariffs will lead to a reduction in exports of almost all manufactured goods to the United States, lower demand for steel from our major trading partners, lower global steel prices, and a widening gap in steel prices between the United States and the rest of the world."
The lowest rate of reciprocal duties announced by President Trump is 10%. This applies to trading partners including the UK, Brazil, Australia, Singapore and Ukraine. The EU has a 20% rate, Japan 24%, and India 26%.
The highest reciprocal tariff to be applied by the Trump administration is the 50% rate applied to Lesotho. Other countries attracting high tariffs include Vietnam (46%), China (34%), Taiwan (32%) and Indonesia (32%).
Steel market participants in Europe and Asia have already been concerned about the effects of the recently imposed 25 percent import duties on vehicles in the United States.
