Steel imports down 30% in 2026 as tariffs bolster US production
Dive Insight:
The sharp decline in steel imports signals that the Trump administration’s Section 232 tariffs on foreign metals are “working as intended,” Brandon Farris, EVP of the Steel Manufacturers Association, said in an emailed statement to Manufacturing Dive. Meanwhile, domestic steel production has increased by nearly 5 million tons since the start of 2025.
“That’s good for American workers, their families and their communities,” Farris said.
Last March, President Donald Trump imposed 25% Section 232 tariffs on aluminum, steel and derivative products. He later increased those tariffs to 50%, before adding a similar levy for copper and making several adjustments, citing efforts to address “national security threats” and “low-priced foreign imports.”
Most recently, Trump signed a proclamation that lowered Section 232 tariffs on agricultural and industrial equipment and machinery from 25% to 15%. He also made it so international companies could qualify for a 10% tariff if their product was primarily made of U.S. steel or aluminum.
In addition to tariffs, disruptions from the Iran war are forcing companies to take on extra costs, such as fuel surcharges, and affecting their sourcing strategies, according to Morningstar analyst Seth Goldstein.
“We could see some importers of steel and other commodities looking to maybe wait for a resolution, wait ’til supply chains normalize, in order to not basically be buying inventory during what might be uptake pricing for the year,” Goldstein told Manufacturing Dive.
At the same time, domestic production is on the rise. As of May 30, U.S. manufacturers have processed 38.93 million net tons of raw steel since January, up 6.8% from the same period a year ago, according to recent preliminary data from AISI. U.S. Steel, Century Aluminum and Hyundai Steel are moving forward with plans to increase domestic steelmaking capacity.
Although the U.S. surpassed Japan to become the third-largest steel producer in the world last year, Farris said foreign competition remains.
“Some foreign steel producers are absorbing the tariff costs to maintain their foothold in the U.S. market, underscoring the need for continued vigilance in enforcing trade rules,” he said.
