Malaysia's steel sector is facing significant challenges due to U.S. tariff policies and an influx of low-priced Chinese steel imports, according to a recent report by CIMB Securities. While infrastructure-driven demand is expected to bolster steel usage in 2025, the anticipated volatility in construction material prices could impact the industry in the near term. Domestic policy changes, including a proposed carbon tax and new levies for foreign workers, are likely to raise production costs for steelmakers already struggling with narrow margins. Additionally, prolonged tariff escalations may redirect surplus Chinese steel to Malaysia, further complicating the market landscape.