4 February 2025
Steel prices are climbing even before the implementation of Trump’s proposed 25% tariffs on Mexican and Canadian imports, with major producers like US Steel and Nucor already announcing price increases. While the tariffs’ implementation is paused for negotiations, their potential impact is significant since Canada and Mexico supply 35% of US steel imports. Manufacturers are feeling the pressure, exemplified by Riverdale Mills’ situation where steel represents two-thirds of production costs. The company currently sources 80% of its wire rod from Canada due to lower shipping costs compared to domestic alternatives. The tariffs would strengthen US steelmakers’ pricing power but could disadvantage American manufacturers competing globally. For consumers, these changes could mean higher prices across various sectors, from appliances to aluminum-packaged beverages. US steel executives support the tariffs and advocate for eliminating exemptions, while Canada and Mexico have promised retaliatory measures, risking a broader trade conflict.