US steel importers adjust supply strategies under 50% tariffs

Steel importers in the United States are reconfiguring their sourcing strategies to maintain monthly volumes above two million tonnes, despite facing significantly higher import tariffs.

More than five months after the reinstatement of Section 232 tariffs and two months after the rate was doubled to 50%, new data from the International Trade Administration (ITA) shows that the impact on overall volumes and pricing has so far been limited. Total steel imports into the US stood at 15.29 million tonnes in the first seven months of 2025—a year-on-year decline of just 5.2%. These figures include provisional licence data for July, influenced by front-loaded imports earlier in the year, particularly in January when volumes reached 2.8 million tonnes.

Shifts in trade flows have been observed across key supplier nations. Imports from Canada dropped 22.5% year-to-date and fell 43.3% in July alone. Imports from Japan declined by 17.7% over the same period, and by 50.4% in July. Vietnamese shipments were also down 29.4% year-to-date. These three countries rank among the US’s eight largest sources of steel imports.

Within the EU, Belgium and Italy recorded year-to-date declines of 27.3% and 24.1%, respectively. By contrast, exports from Germany rose by 30.5% and from Spain by 16.1%.

According to MEPS International, whose latest International Steel Review first reported these developments, the most significant decline was seen in flat carbon and alloy steel imports, down 18.8% so far this year. Long product imports declined by 7.7%, while pipe and tube imports increased by 9.9% to nearly 2.9 million tonnes. Imports of semi-finished steel were also up, by 8.6%, reaching nearly 3.9 million tonnes.

Wire rod imports have shown notable growth, rising 20.8% year-to-date to 770,621 tonnes, following a 37.8% increase in the same period last year. This trend is attributed in part to reduced supply from Canada and ongoing production constraints at Liberty Steel’s US operations.

Import volumes from some non-traditional sources have increased significantly. Shipments from Malaysia rose 263.7% to 94,882 tonnes—over half of which was wire rod. Egypt’s exports grew 26.2% year-to-date, with a single-month record in June delivering over 96,000 tonnes. Taiwan, India, and Indonesia also recorded substantial increases, up 24.1%, 164.4%, and 152.2%, respectively.

Despite the higher tariffs, MEPS notes that limited demand has so far dampened any upward pressure on US domestic prices. Flat product prices in the US declined again in August. Several respondents reported a pause in new import orders, suggesting that the full impact of the 50% tariff may yet emerge in the coming months.

Source: MEPS International, Photo: Fotolia