Countries and companies are adapting to US steel tariffs
Governments and companies around the world have been forced to adapt their strategies to deal with higher tariffs following the reinstatement of the 25% tariffs imposed under Section 232 on steel imports in the United States.
Tariffs remained the focus of discussions with MEPs' research partners this month, with many U.
S. respondents attributing the weakness in domestic demand to the resulting market uncertainty. Despite the lack of clarity from the U.
S. government, companies and politicians around the world are already taking action.
Tariffs on imports from the United States have increased dramatically in recent months. According to S&P Global, the average tariff rate in the United States now stands at about 17%, up 2.5% from the same period last year, but below the average of 24% in April, when most Chinese imports were subject to duties of 145%. American importers are awaiting a final decision on "reciprocal" tariffs levied on countries around the world, which should be made by July 9.
However, it is expected that the uncertainty will not end there. The agreement between the United States, Mexico and Canada will be reviewed in July 2026.
Canada's steel industry has been hit hard
Almost all steel imports to the United States are currently subject to a 25 percent tariff, which took effect on March 14. This has already led to layoffs and a reduction in steel production in Canada.
In response, both the Canadian government and domestic steel producers have shifted their focus to the domestic market. The American company Cleveland-Cliffs, which acquired Stelco in 2024, announced in its first-quarter earnings report that its new Canadian division will now be sold exclusively in Canada. This change will aim to increase the share of sales in Canada from 70% to 100% of production.
In addition, the latest budget for the province of Ontario, which produces more than half of Canada's steel, now includes provisions for the purchase of steel in Canada. public infrastructure projects. In addition, the federal government retaliated by imposing a 25% tariff on steel imports from the United States starting on March 13, and is currently evaluating further measures to protect the industry. In 2024, Canada imported 8.3 million tons of steel, 40% of which came from the United States.
Companies announce investments in American steel
Canada's steel companies are not the only manufacturers adjusting their strategies in light of policy decisions made by the Trump administration. Japanese steel giant Nippon Steel has promised to invest up to $4 billion in additional investments.