Presidential orders reshape US stainless steel supply chains 

A series of executive orders signed by new United States President Donald Trump will realign stainless steel demand from the country’s key industrial sectors.  

A pledge to implement 25% tariffs on imports from neighbouring countries Canada and Mexico was not acted upon in any of the 20-plus orders signed on inauguration day. However, President Trump had suggested that these tariffs – along with a 10% rate on Chinese goods – could be implemented as soon as February 1.  

• This content first appeared in the January edition of MEPS International's Stainless Steel Review. The publication features market insight, stainless steel prices, indices and forecasts from key markets in Europe, Asia and North America. Visit mepsinternational.com or contact MEPS for details of how to subscribe.

The effect of these proposed tariffs would be limited. Only 8% of US stainless steel imports originate from these three countries, according to preliminary US Commerce Department data analysed by MEPS. It shows that Taiwan (15%), Finland (9.7%), India (8.9%), Italy (7.1%) and Vietnam (5.1%) secured the largest share of stainless steel imports as the overall volume of material entering the US rose 8.4% year-on-year, to 1.01 million tonnes, in 2024.  

Nonetheless, an "America First Trade Policy" memorandum signed by the president could introduce tariffs to imports from these and other countries. The memorandum directs federal agencies to investigate and recommend actions to prioritise US interests in trade practices by April 1.  

In November’s Stainless Steel Review MEPS reported that some US importers were offering “pre-Trump import packages” as part of efforts to avoid potential tariffs following his inauguration. In January, MEPS’s respondents said that some overseas suppliers were now offering material inclusive of any costs incurred as a result of newly introduced tariffs.   

Shift in economic policy  

Executive orders targeting changes in US economic policy will have a greater influence on stainless steel consumption.  

President Trump has ordered that the US be withdrawn from the Paris Climate Agreement. An executive order titled ‘Declaring a national energy emergency’, meanwhile, signals a realignment of US energy policy. The new administration seeks to reprioritise the extraction of greater volumes of oil and natural gas to ensure the country’s energy supply.  

The ‘Unleashing Alaska’s extraordinary resource potential’ order, signed on January 20, further underlined a focus on producing liquefied natural gas (LNG) and extracting other natural resources.  

During MEPS’s January research period, MEPS research respondents indicated that they had already become aware of an increased number of stainless steel-consuming LNG projects in the US.  

Many fear that the renewable energy sector will suffer under the Trump presidency, however.   

In declaring the country’s “energy emergency”, the Trump administration omitted wind and solar power from a list of energy sources which should be leveraged to secure domestic supply. The president also paused the release of new licences for offshore wind projects, ordering a review of all existing licences.   

New priorities, new growth forecasts  

There is also uncertainty about future funding from the USD1.2tn Infrastructure Investment and the USD891bn Jobs Act and Inflation Reduction Act. Both of these acts came under President Biden’s ‘Green New Deal’. President Trump’s orders include a directive to pause further funding, pending a review. Green projects, including those related to electric vehicle infrastructure, are expected to be vulnerable to cuts.   

MEPS expects stainless steel prices to increase in the US during 2025, most notably in the first half of the year. This trend is partially attributed to a reduction in downward price pressure from imports.   

Increased tariffs and restrictions on immigration bring a risk of inflation, which could slow the Federal Reserve’s plan to reduce the country’s interest rate from its current 4.5%. Nonetheless, the IMF’s January GDP projections raised its US forecast from 2.2% to 2.7%.