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American import costs of steel and aluminum are used in everything from baseball bats to cars and aircraft parts, expected to increase more than $ 100bn after Donald Trump’s rise Tariff 50 percent on metals this week.
High levy According to estimates from the Boston Consulting Group, on Wednesday, it will result in an additional cost of $ 52.6BN per year on steel and aluminum products.
The total expected cost on the new rate imports takes up to $ 104BN, basically doubled the $ 51.4bn effect forecast by Consultancy before the Consultancy has originally introduced 25 percent levy in March.
Analysts said that the continuous change in the complex web of tariffs imposed by the US and their tariff regime of Trump has made it difficult to estimate how the global trade of metals will be affected and how much the prices of products in the US will increase.
BCG Managing Director Nicole Woigat said, “We have not really seen a change in trade flow with a 25 percent price increase so far.” “The question is whether we will see it with a 50 percent price increase and it depends on how the price movement is.” [of the metals] will go.”
During a UBS conference earlier this week, Ford’s Chief Financial Officer Sherry House stated that half of the gross tariff effect came from the forecast for 2025, which included steel and aluminum.
Tariff dialogue between the US and China may lead to numbers, the house said, “China brings down the tariff parts and brings up aluminum and steel parts. So the good news is that they are offset.”
Canada and the European Union were the top exporters of the US steel and aluminum products last year, while the Congress was the largest for steel and mexico for aluminum products, according to the Congress Research Service.
The new American tariff can result in export loss of up to $ 2BN for the rest of this year for the metal sector in Canada, $ 1bn for Mexico and $ 600MN for South Korea, Allianz Research.
European steel producers have warned that 50 percent of tariffs means that most of the 3.8MN tonnes of European Union exports in the US were now under the “actual import ban”. They are concerned that most of the steel from other countries fixed for the US market will now be maligned to Europe, instead the first American tariff was introduced when it happened in 2018.
European Commission this week Informed Since the beginning of the year, the steel versions for a range of steel products fall into large growth and steep value for a range of steel products, including industrial robots.
The first tariff imposed during the Trump administration reduced the import of steel and aluminum products to an estimated 24 percent and on an average by the US International Trade Commission in 2023.
While this increased the average US prices of steel and aluminum by 2.4 percent and 1.6 percent respectively, the US production of metals increased by only a small amount.
US steel growers plan to expand production to promote capacity and help to fill certain intervals, which will be abandoned due to decline in imports, but industry experts said that the new mills would take time before the commissioning of the new mills.
Philip Bell, president of the US Trade Group The Steel Manufacturers Association, stressed that the announcement of the tariff in 2018 had “investment of more than $ 20 billion in new steel facilities”.
The S&P global rating estimates that the high cost from steel and aluminum alone “can be a hit by 5–10 percent of 5–10 percent of the price increase in 2025.
Sector lead don Marlu said for metals, capital goods and packaging in S&P global ratings, while this means that companies would need to increase the price of 2 percent in prices to keep the profits stable, manufacturers were expected to share some of the rising cost burden to support sales.
