US President Trump said in early February that new tariffs would be imposed on steel, aluminum, and energy imports, affecting key trading partners like Canada, Mexico, and China.

In response, Canada, Mexico, and China planned retaliatory measures, with Canada imposing 25% duties on US$155 billion in US goods, Mexico arranging retaliatory tariffs and relevant measures, and China filing a WTO complaint.

In 2023, US steel consumption was around 93 million tons, with net imports covering 13% of demand, while aluminum imports accounted for 44% of the 4 million tons consumed.

The US steel industry, recovering from a tough 2024, warned that increased imports are hurting profits and production. While Trump argued tariffs will boost domestic production, Morgan Stanley’s analysts said new facilities would take years to build, driving up domestic prices. US tariffs on steel and aluminum were concluded to hit millions of tons of imports.