Who sells most steel and aluminum to the USA and who is standing in front of tariffs? | Business and economic news

The President of the United States, Donald Trump, has announced plans to absorb 25 percent tariffs for all steel and aluminum imports as well as mutual tariffs for countries.

On Monday, Trump announced during an signing ceremony in the Oval Office that the tariffs for foreign steel and aluminum should be imposed “without exceptions or exceptions”.

The tariffs will come into force on March 12th.

Who are the top steel suppliers in the USA?

Steel is an important material that is mainly used in construction, production, transport and energy sectors due to its strength, durability and versatility.

About a quarter of all steel used in the USA is imported.

Canada, Brazil and Mexico are the three best steel suppliers in the USA. Between March 2024 and January 2025, according to the international trade administration, they provided about half (49 percent) steel imports for domestic consumption.

During this period, Canada delivered 22 percent (5.47 million tons) of the 25 million tons of steel that were imported into the USA, followed by Brazil with 15 percent (3.74 million tons) and Mexico with 12 percent (2.9 million Tons).

South Korea, Vietnam, Japan, Germany, Taiwan, the Netherlands and China, together as the remaining top 10 steel providers, made 30 percent of US steel imports.

Who are the top aluminum providers in the USA?

Canada is far from the largest aluminum supplier in the USA. Between March 2024 and January 2025, according to the international trade administration, almost 40 percent of US imports with a total of almost 3 million tons delivered.

The United Arab Emirates, China, South Korea and Bahrain follow Canada to make the five most important aluminum suppliers in the USA.

Aluminum is a light metal and is widespread in the automotive and aviation industry. It is also often used in packaging, especially for food and drinks, because the content and its recyclability can be preserved.

The United States is more dependent on imports for aluminum, with about half of all aluminum being used in importing the country.

What are tariffs and how do you work?

A tariff is a tax imposed by the government on imported goods and services paid by companies that bring them into the country.

The tariffs were developed to protect domestic industries and often increase the costs for consumers by becoming more expensive and potentially reducing demand.

President Trump explained that he would implement tariffs for various imported goods to protect the US industries, to reduce the trade weights and to promote domestic helpers.

How did Trump’s first tariffs affect the steel on the steel?

In March 2018, Trump imposed 25 percent tariffs on steel and 10 percent on aluminum. The idea behind the taxes was to reduce the dependence on foreign steel and increase domestic production.

The markets initially responded with an increase in US steel prices and a decline in inexpensive imports, which increased profits for domestic companies. However, the increasing US production led too much steel on the domestic markets. By the end of 2019, steel prices had dropped by more than 40 percent, mainly due to retaliation tariffs from US trading partners as well as weaknesses, especially in car productions and in the construction sector.

“Between May 2018 and May 2019, US raw steel production rose by almost 4 percent. Mills and warehouses increased the prices and led to record profits for them, but this increased these construction costs. It is likely that we will see a similar trend when the industries are shifted to domestic producers, ”said Deborah Idowu, Metals Research Specialist at the London Stock Exchange Group (LSEG).

How does this affect the US steel and aluminum industry?

Steel and aluminum are important materials in the construction and automotive industry as well as in the manufacture of machines, more durable goods and electronics.

If the tariffs are implemented, the effects on the metal trade could be significant in a report by the Metal Research Team of the London Stock Exchange Group (LSEG).

Customs could possibly increase costs for manufacturers and disrupt established supply chains. While the US manufacturers may turn to domestic manufacturers to meet demand, they would probably have higher prices, which in turn could increase the costs of industries such as car production and housing.

Kanada and Mexico together made 90 percent of the aluminum scrap, which was imported to the USA last year.

“The proposed tariffs risk risks that trigger retaliation measures from important trading partners and disturb the North American aluminum supply chain. At the same time, there are concerns about the potential effects on US manufacturers who rely on aluminum for production and are now exposed to higher input costs, ”said Saida Litosh, a senior metal analyst at LSEG.

How can these Trumps tariffs differ?

There could be a big difference, said Idowu.

A year after the 2018 tariffs were imposed, Trump has excluded important trading partners Canada and Mexico, she emphasized. “Trump pointed out that exceptions may be difficult to get during this time,” she said.

“There is also the problem of escalation – what will the affected countries do in response to it, you will increase retaliation tariffs, if so, what will the scale be? There is a real risk that the possible price increases influence the downstream industries and consumers. “

There is also the extent of the tariffs that Trump wants to impose, said Litosh. “While the 2018 tariffs were set to 10 percent, the proposed 25 percent interest rate would significantly increase the costs for US manufacturers that rely on imported aluminum.”

How will tariffs affect China?

China dominates the global steel market and is the world’s largest producer that makes up more than half of the global production. As a result, cheaper Chinese stahlexports have flooded the global markets.

Although China is not a big exporter in the United States, it is probably affected in other countries such as Vietnam due to the processing of Chinese steel and aluminum, which will then enter the USA.