Issue 09, 2025 - This week's editorial: Trade restrictions, regulation dominate markets

Trade restrictions and regulation dominated another busy week in the global steel industry, as US tariffs caused domestic prices to soar, creating opportunities for foreign suppliers, while rumours of China cutting production by 50 million tonnes this year briefly lifted sentiment. The EU meanwhile published its long-awaited Clean Industrial Deal but the bloc’s steel industry was disappointed with the result.

US President Donald Trump confirmed that tariffs on imports from Canada and Mexico will go into effect on 4 March, as well as an additional 10% tariff on imports from China, again justifying them as a means of combating fentanyl entering the US. This precedes the 25% blanket steel tariffs set to come into force from 12 March.

Pricing of domestically produced steel coil in the US soared, driven not by any surge in downstream consumption but by federal policy-based uncertainty. Hot rolled coil prices jumped to $800-900/short ton, from $720-780/st the previous week. Sources however pointed out that this was not panic buying, contrary to some reports, but merely players ensuring they have sufficient stock to deal with uncertainty.

The complaints nevertheless grew louder from downstream steel users about how tariffs are bad for business. US farm equipment manufacturers, fabricators and automakers contended the trade measures will impede growth and productivity in their respective industries.

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