US Steel Importers Adapt to 50% Tariffs Amid Supply Chain Shifts

Import Volumes Hold Steady Despite Higher US Steel Tariffs

US steel importers are reworking their supply strategies to maintain monthly import levels above 2 million tonnes, despite increased tariffs. The reinstatement and doubling of Section 232 tariffs—now at 50%—has altered trade patterns but failed to significantly curb volumes or boost prices.

According to the International Trade Administration (ITA), total US steel imports reached 15.29 million tonnes year-to-date through July. Although this marks a 5.2% decline, early-year front-loading before the tariff hike inflated January figures to 2.8 million tonnes. The drop in imports comes mainly from traditional partners like Canada (-22.5%), Japan (-17.7%), and Vietnam (-29.4%).

Interestingly, some European Union countries increased exports to the US. Germany (up 30.5%) and Spain (up 16.1%) managed to gain market share, while Belgium and Italy saw steep year-to-date declines. The overall impact of tariffs varies widely across product categories and trade partners.

Wire Rod, Pipe and Tube Imports Climb as Trade Diversifies

While some steel categories declined, others surged. Pipe and Tube imports rose by 9.9% to almost 2.9 million tonnes, and Semi-Finished Steel increased by 8.6% to 3.9 million tonnes. In contrast, Flat Carbon and Alloy steel imports dropped by 18.8%, with Long products down by 7.7%.

One standout is wire rod, which climbed 20.8% year-to-date to 770,621 tonnes, building on last year’s 37.8% rise. Domestic buyers in the US Midwest note worsening supply from Canada, made worse by issues at Liberty Steel facilities. This shortage has further increased demand for foreign wire rod, often from newer sources.

Imports from Malaysia surged 263.7%, with wire rod accounting for over half the total. Egypt, India, Indonesia, and Taiwan also recorded strong gains. For example, India’s steel exports to the US jumped 164.4%, while Taiwan saw a 24.1% rise. The most recent spike came in June, with Egypt alone shipping 96,442 tonnes—nearly 88,000 of which were rebar and wire rod.

SuperMetalPrice Commentary:

US steel importers have shown flexibility under tariff pressure, redirecting supply chains while maintaining import momentum. Despite the 50% tariff rate, domestic demand and supply constraints continue to support foreign sourcing, especially in high-demand segments like wire rod and pipe products. The uneven impact across countries suggests that trade partners with competitive pricing or unique product offerings are gaining ground. However, the full effect of higher tariffs may not yet be fully realized. Should demand recover or domestic production falter further, import volumes could stay strong—or even grow—in defiance of policy intentions.