Tariffs stalled global stainless steel consumption, survey finds 

One in three large stainless steel-consuming companies delayed their orders in response to international trade tensions triggered by the United States’ import tariffs, according to a survey published by Outokumpu. 

The stainless steel producer surveyed 70 senior decision-makers at companies with a combined annual revenue of around USD430 billion to produce its whitepaper, The Evolution of Materials: Stainless Steel Insights 2025. In seeking to assess the effect of tariffs on the stainless steel supply chain, it found that over half of respondents were now re-evaluating their sourcing strategies. Furthermore, 30% have already switched suppliers in response to shifting trade conditions. 

• This article first appeared in the September 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.

MEPS’s September research found that sentiment remained negative among many stainless steel exporters to the US, in both Europe and Asia. The continued application of 50% Section 232 tariffs remains an unwanted barrier to entry for steelmakers suffering low demand in their domestic markets. 

An end to US stainless steel imports increase 

Data published by the International Trade Administration shows that US stainless steel imports were 4.9% up year-to-date, by the end of July, at 629,366 tonnes. The front-loading of orders played a part in this trend. January’s 108,493 tonne volume was the largest influx of stainless steel into the US market since June 2022, with March’s 102,261 tonnes the second largest. 

A rise in US stainless steel prices, during a period in which values in other markets declined, mitigated the effect of tariffs to the end of July. The low end of MEPS’s US transaction price range for grade 316 cold rolled coil has risen by 8.7% since March, when the Trump administration reinstated the blanket implementation of 25% Section 232 tariffs. In Taiwan, the largest source of US imports, the price of the same product has declined by 9.7%, in local currency terms. 

However, the ITA’s preliminary import data for August shows that the 50% tariff is starting to have a significant effect. It shows volumes down by 21.5% year-on-year. More significant declines are indicated by import licence data for September, which show volumes down by over 40% year-on-year. 

Many stainless steel-containing products are also now affected by the US government’s “reciprocal” tariffs. This separate barrier is likely to reduce end-users’ stainless requirements, further undermining prices in countries that traditionally export to the US. In late April, the US Court of Appeals ruled that “reciprocal” tariffs had been implemented illegally. However, that ruling will not take effect until October 14. Until then, they remain in place, levied at 10% for the United Kingdom; 15% for the EU, Japan and South Korea; 20% for Taiwan; and 10% for China, excluding that country’s additional Section 301 and fentanyl-related tariffs. 

Furthermore, the scope of Section 232 tariffs is expanding. On September 15, the US government opened a second two-week window in which industry stakeholders can apply for derivative steel products to be added to the regime. After the first such window, over 400 products were added, each becoming subject to the 50% tariff. 

Hope for growing stainless steel consumption 

Around 29% of Outokumpu’s global profits are made in its Americas business area (United States, Mexico and Canada), where it holds a 23% market share with material produced at its operations in Calvert, Alabama and San Luis Potosí, Mexico. In September, MEPS respondents in the US reported that the business was working hard to maintain its market share, offering competitive prices. 

Respondents to Outokumpu’s survey indicated that the effect of US tariffs on investor confidence had paused many investments across the world, raising concerns about the progression of major infrastructure projects. However, just under half of respondents expect increased procurement activity within 12 months, with one third predicting a “significant” rise in the next five years.