Issue 06, 2025 - This week's editorial: Trump tariffs escalate, EU awaits policy rescue

Last week ended with a bombshell when US President Donald Trump announced, while flying to the Super Bowl on board Air Force One on Sunday, that the US will impose 25% blanket steel tariffs. Spoiler alert - subsequently, late on Monday, he signed the executive order to make them official. The Chinese market was very slow to awake from its Lunar New Year holiday slumber, while Turkish scrap demand cooled, short of the $360/tonne mark, as steel values softened. The Indian steel market meanwhile experienced somewhat of a post-budget announcement anti-climax. Big European steel industry names offered cautious demand rebound outlooks for 2025, but emphasised much-anticipated EU industry programmes will be critical for industry survival. The region’s largest producer increased coil prices again.

Although Chinese prices turned down slightly on the first day after the holiday, following tit-for-tat US-China tariffs, they rebounded thereafter and remained largely unchanged on Friday versus pre-holiday. Large swathes of the market remained on holiday until the current week.

On Monday, the day before they were due to come into effect, Trump announced 30-day suspensions for the implementation of 25% additional tariffs on all imports from Canada and Mexico. The 10% tariff on China was upheld. China subsequently announced counter tariffs effective 10 February, including a 15% levy on US coking coal. 

The Mexico and Canada tariff reprieve provided a momentary sigh of relief for the regional steel market, but extended the uncertainty that had already interrupted restocking and other strategic commitments.

Following the tariff announcement, Nucor increased its domestic hot rolled coil and plate prices for the second consecutive week. US domestic HRC prices climbed to $660-710/st, reversing course after declining the prior week. The market mood was upbeat, with sources pointing out limited imports from neighbouring countries and costlier scrap were supportive of pricing.

» Login to read the full report or sign up for a trial.