US reinstates 25% Section 232 steel import tariffs

The United States government has reinstated its 25% Section 232 tariffs on steel imports from all countries – including Canada.?

President Donald Trump had threatened to double import tariffs on material from its North American neighbour and largest trade partner, Canada, after Ontario premier Doug Ford’s vow to implement a 25% surcharge on electricity exports. However, this was not implemented after Ford paused the measure and entered negotiations with the Trump administration.?

The blanket reinstatement of Section 232 tariffs comes just over a week after the US imposed a 25% tariff on all goods imported from Canada and Mexico. However, President Trump later signed an order exempting cars from these tariffs following appeals from major US carmakers, which rely on cross-border supply chains.?

MEPS’s US steel prices have been rising since the start of the year. The country’s steelmakers have been able to raise their list prices as buyers anticipate increased costs and a tightening of supply.?

According to American Iron and Steel Institute data, imports account for 23% of US finished steel consumption. Imports from Canada – the largest exporter to the US – account for 6.3%.?

In the February edition of its International Steel Review MEPS explored the effect of March 12’s reapplication of 25% Section 232 tariffs.??

Under the new system, Canada and Mexico will face the same punitive measures as every other steel-producing nation. The International Steel Review said: “They will join a list of countries that previously avoided at least part of the Section 232 tariffs due to free trade agreements, import quotas or exemptions. This is comprised of: Argentina; Australia; Brazil; the EU; Japan; South Korea; the United Kingdom; and Ukraine.?

“In total, these nations accounted for 81.9% of the 26.2 million tonnes of steel imports into the US during 2024. Imports from Canada, Mexico and Brazil alone made up 50.5% of that total.”???

EU consultation on tariffs’ response?

In response to the application of 25% US import tariffs, the European Commission today launched a consultation on its response. The Commission said that the US tariffs will affect a total of USD26 billion of EU exports, which corresponds to approximately 5% of total EU goods exports to the US. It added: “Based on current import flows, this will result in US importers having to pay up to EUR6 billion in additional import tariffs.”?

The Commission’s proposed measures include tariffs on a range of US exports, ranging from boats to bourbon to motorbikes. Consultation on the measures, which will initially target around EUR18bn of US exports to the EU, will conclude on March 26. The resulting measures will be applied from mid-April, it said.?

Both Canada and Mexico have said that they will put retaliatory measures in place following the earlier, March 4, implementation of 25% tariffs on all exports to the US from their domestic producers.?

Canada imposed tariffs on USD30bn in goods imported from the US from March 4 and could introduce more – on a further USD125bn in imports from the US – following a 21-day consultation period.?