Prices of steel and many metals in the US may increase after Mr. Trump's decision to impose tariffs

Steel and aluminum were among the first tariffs imposed during President Donald Trump’s first term, according to Bloomberg. The reimposition of the measures is expected to affect millions of tons of imported metals.

The United States relies on foreign supplies to meet its demand for metals used in construction, vehicles, technology and military equipment. Its closest trading partners are also among the largest sources of steel and aluminum imports.

According to data from the United States Geological Survey, total US steel consumption in 2023 will reach about 93 million tons, of which net imports account for 13% of demand.

Last year, Canada, Brazil and Mexico were the three largest sources of steel imports to the US, according to data from the US Commerce Department.

The US steel industry just had its worst year since Mr Trump’s first term. Domestic steel mills say the resurgence of imports is hurting profits and production output.

As for aluminum – a more valuable metal than steel – the US will consume about 4 million tonnes in 2023, with net imports accounting for 44% of total consumption. Canada is the source of 56% of US aluminum imports, according to research from Morgan Stanley.

Mr Trump has suggested that tariffs could help US companies increase domestic production. But for the metals industry, building new production facilities will not happen quickly, according to Morgan Stanley.

“Building and operating new smelters or plants can take three years or more,” Morgan Stanley analysts Carlos De Alba and Justin Ferrer said in a report this week. “As a result, any tariffs on metals or minerals are likely to result in higher domestic prices for domestic buyers.”

Trump told reporters on Friday that tariffs on copper would take longer to implement than those on aluminum and steel. The United States remains a net importer of copper, with foreign supplies accounting for about 36% of domestic refined copper demand in 2023, according to Morgan Stanley. More than a third of all copper imports come from Canada and Mexico.

President Donald Trump has previously said he would impose tariffs on a range of imports, including oil and metals, in the coming months, expanding his plan to impose sweeping trade tariffs beyond those planned for China, Canada and Mexico.

“We’re going to put tariffs on chips. We’re going to put tariffs on oil and gas. That’s going to happen pretty soon, I think around February 18. And we’re going to put a lot of tariffs on steel,” he added.

Vietnambiz