The recent decision by U.S. President Donald Trump to increase Section 232 tariffs on steel and aluminum imports from 25% to 50%, effective June 4, is creating significant pressure on global steel markets. The White House argues that the measure will strengthen domestic industry and sustain production capacity, but industry experts predict new trade barriers and disruptions.

In the U.S., steel prices are rising in response to the tariffs. Rebar prices jumped by $60 to $810–840 per short ton, while hot-rolled coil increased by $20 to $870–890. However, weak demand could limit further price surges. Short lead times indicate mills may struggle to pass costs downstream.

The tariffs are also affecting international markets. Turkey, a major buyer of U.S. scrap, faces pricing challenges amid competition from low-cost Asian steel. The EU, which exported 3.8 million tons of steel to the U.S. annually, now faces a potential halt in shipments, worsening its regional oversupply and causing steel prices to drop.

China’s growing exports are adding to global oversupply, forcing mills worldwide to operate at breakeven levels. Meanwhile, Ukraine is expected to suffer both in steel exports and iron ore trade due to declining global prices, deepening the economic strain