President Trump doubles import tariff on Canadian steel

US President Donald Trump has announced that the 25% Section 232 import tariffs on Canadian-origin steel, to be applied from Wednesday (March 12), will be doubled to 50%. 

The announcement was made via social media and followed Ontario premier Doug Ford’s vow to implement a 25% surcharge on electricity exports. The energy surcharge, announced in retaliation to the 25% US import tariffs, would affect 1.5 million homes and businesses across Minnesota, Michigan and New York. 

Commenting on today's announcement, MEPS International US steel market analyst Laura Hodges said: “Canada is one of the United States' largest steel trading partners and, as a net importer, the US relies on Canadian steel to operate its manufacturing sector.

"US steel prices are already so much higher than the rest of the world that US buyers will simply pay the Canadian price plus tariff in the near-term. Assuming that the 50% tariff on Canadian steel stays in place, supply chains will adjust, forcing Canadian steel mills to cut production, and US steel prices will remain artificially high over the coming months."

Last week, a MEPS insight article explored the extent to which President Trump’s introduction of 25% tariffs on all Canadian-origin imports would affect steel 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 2024, Canada shipped nearly six million tonnes of steel to the US, accounting for 23% of total steel imports. Canada exported 927,000 tonnes of hot dipped galvanised sheet and 550,000 tonnes of cold rolled sheet, representing 34% and 38% of total US steel imports for those products, respectively, according to the US Commerce Department.  

However, the supply of Canadian-origin hot rolled sheet, plate and wire rod is of greater concern to steel buyers. The US imported 910,000 tonnes of hot rolled sheet and 604,000 tonnes of continuous mill plate (plate in coils) from Canada, last year, representing 48% and 60% of total US steel imports in those categories. The recent addition of domestic capacity in sheet and plate production will help cushion some of the supply shock for US steel buyers, but near-term disruptions are expected.  

More than 450,000 tonnes of wire rod was imported from Canada in 2024, making up 46% of total US wire rod imports. These imports have become even more critical to domestic supply following the 2024 idling of Liberty Steel’s wire rod production in South Carolina and Illinois. According to worldsteel data, the US produced 2.4 million tonnes of wire rod in 2023, but that figure has since declined significantly due to these plant closures.