Impact of Tariffs on Steel and Aluminum Industries

Tariffs imposed on steel and aluminum since 2018 have significantly affected the respective industries in the United States. Domestic steel production has increased due to these tariffs, resulting in a reduction in the import share to approximately 32%. However, the situation differs for aluminum, where only about half of the demand is met domestically, primarily sourced from Canada. The high energy requirements to produce aluminum raise concerns regarding competitiveness against foreign producers, especially with current electricity shortages.