Increased US tariffs on steel, aluminum to affect domestic market
The rating agency Fitch Ratings warned that the increased tariffs from 25% to 50% on all steel and aluminum products imposed by the US could affect primarily its own domestic market.
Fitch emphasized that if the increased tariffs remain in place for a longer period, US´s industrial sectors will see their margins reduced due to higher material prices.
In 2023, the country imported about 18% of the steel it consumed. The situation is worse for aluminum while the country produced only 0.7 million tons compared to a total consumption of 4.7 million tons; 70% of the total came from Canada.
Fitch noted that when similar tariffs were introduced in 2018, steel prices rose 43%, although the trend reversed in early 2019. For this time, hot-rolled steel prices have increased 13%.