US steelmakers faced nearly $39 million in added costs in May due to blanket 10% import tariffs on seaborne steel feedstocks and ferrous scrap, according to an Argus analysis of customs and manifest data. The tariffs, imposed in early April, affected imports of pig iron, direct reduced iron (DRI), and bulk ferrous scrap—key inputs for electric arc furnace (EAF) producers, particularly those making flat-rolled steel.

In May, US steelmakers imported 1.07 million metric tonnes of feedstocks and scrap valued at $386 million. Excluding shipments from Canada and Mexico, which are exempt under the US-Mexico-Canada Agreement, imports included 592,000 tonnes of pig iron worth $268 million, 38,500 tonnes of scrap worth $16 million, and 126,000 tonnes of DRI worth $52 million. Nucor also received four bulk vessels of Brazilian iron ore pellets totaling 314,000 tonnes, valued at $50.6 million.

Despite the added costs, Nucor downplayed the impact due to its diversified sourcing strategy. Steel Dynamics, however, adjusted its melt mix to rely more on domestic prime and shredded scrap. Further disruption looms as President Trump threatens new tariffs—50% on Brazilian pig iron and 30% on European scrap—starting August 1, potentially reshaping global trade flows.