The US decision to double steel import tariffs to 50 percent has sparked mixed reactions among market participants, with concerns over its effectiveness as import volumes continue to decline. President Donald Trump announced the tariff hike on 30 May, effective from 4 June, following the initial global 25 percent Section 232 tariffs imposed in March, which eliminated exemptions and tariff-rate quotas.
Buyers and importers are assessing the impact, with some expressing skepticism, describing it as "tariff fatigue." Others anticipate a potential short-term surge in purchases ahead of possible mill price increases. However, steel demand—both domestic and imported—has been weak due to economic uncertainty and limited investment in steel-intensive projects.
Despite import prices being lower than domestic rates, foreign steel has seen reduced interest, with buyers cautious about US trade policy volatility. Some importers fear additional costs on steel in transit, with duties not settled before the tariff increase taking effect.
Steel imports in May fell to 1.84 million metric tonnes, a 29 percent drop from the previous year. Hot-rolled coil import prices dipped to $780 per short ton on 27 May, reflecting sustained weak demand. The market now awaits clarity on further policy developments and potential price adjustments.
