Impact of Tariffs on Steel and Aluminum Industries

The introduction of tariffs on steel and aluminum has significantly altered the landscape of these critical industrial metals in the U.S. Steel production has largely remained domestic, with import shares falling to approximately 32 percent since the tariffs were implemented. This decline means increased production capability within the U.S. steel sector, a trend expected to boost prices and impact various industries, particularly construction. In contrast, the aluminum market, which relies heavily on imports from Canada, faces challenges due to high manufacturing costs and limited domestic output, leaving U.S. companies less competitive against foreign producers despite existing tariffs.