US steel market braces for tariff impact on Canadian and Mexican imports
Time:Fri, 24 Jan 2025 08:52:22 +0800
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The US steel market is set to experience significant changes as new tariffs on Canadian and Mexican goods come into effect on February 1. The US government announced a 25% tariff on imports from these two major steel exporters, which collectively account for 34% of US steel imports.
This measure, aimed at addressing issues related to illegal immigration and fentanyl trafficking, is expected to disrupt the flow of steel products, particularly hot-rolled steel, which constitutes a significant portion of their exports to the US.
Currently, market activity remains subdued, with most buyers relying on long-term contracts rather than spot market purchases. However, the impending tariff is anticipated to drive price increases and prompt shifts in supply chains.
Market observers predicted that the tariff would intensify competition and create upward pressure on domestic steel prices in the coming weeks.
