What Do New Steel Tariffs Mean for the Steel Industry and Westfield Steel Customers?

Recent announcements of new steel tariffs have raised some concerns across the industry. Effective March 12, 2025, the United States will impose a 25% (or more, depending on the day) tariff on imported steel and aluminum, significantly impacting businesses relying on foreign steel. According to reports from Fastmarkets, the Council on Foreign Relations, and NPR, these tariffs will drive up steel prices, particularly for companies that source significant volumes from countries such as China, Mexico, and Canada. As increased costs sprint through supply chains, end customers will see price increases on steel and steel-based products. All steel suppliers will face the same headwinds, and Westfield Steel’s job is to ease the price pain in the short run.

Understanding Market Impacts and How Steel Tariffs Affect Steel Prices

The Trump steel tariffs aim to protect domestic steel manufacturers and reduce reliance on international imports. However, industries that depend on imported steel, including construction, automotive, and heavy equipment manufacturing, will experience some financial strain. Companies near major port cities, where steel imports are more prevalent, will be the most impacted. However, just as in 2018, all steel buyers will be affected immediately. In the US, domestic steel mills have already raised prices 15% to meet the artificial floor on imports, just as they did in 2018. Regardless of the actual cost structure of US mills to produce steel, they will use the tariff as an opportunity to increase profits at the expense of steel consumers.

Boston Consulting Group projects these tariffs will pressure global supply chains, with some countries already announcing retaliatory tariffs. As a result, US companies sourcing steel from international suppliers may adjust purchasing strategies to mitigate disruptions and rising costs.

Steel is a true global commodity, and will be subject to traditional economic factors of supply and demand. Businesses importing large quantities of raw steel will face the highest price hikes as they absorb the 25% duty immediately. Those reliant on imported finished steel parts will also see elevated costs, particularly in sectors such as construction, infrastructure, and automotive where steel is an essential component. Domestic steel buyers will also face price increases due to higher demand for US-made steel and lower supply as more companies shift away from imports.

Why Westfield Steel Customers Can Expect Reduced Impact

 While some companies will feel the full effect of new US steel tariffs, Westfield Steel remains well-positioned to maintain customers’ pricing stability. We primarily source raw steel from US-based mills, with only a tiny portion of our supply chain relying on international imports.

While no steel service center will be able to weather the entire tariff storm, several critical factors limit Westfield Steel’s exposure to tariff-driven price fluctuations. Most importantly, approximately 95% of Westfield Steel’s raw steel purchases come from domestic mills and suppliers. Of those that are not domestic, that 5% comes from our friends to the north, Canada. While the daily rollercoaster involves our northern neighbors, we expect Canada to be exempted when the dust settles.

We import only a minor percentage, approximately 0.5%, of our finished parts from outside the US. As an inland and proudly American steel supplier, Westfield Steel is not reliant on import-heavy supply chains. Westfield Steel customers can expect only slight price adjustments—especially when compared to competitors that import large volumes of steel.

Westfield Steel: A Reliable Supplier with Decades of Expertise Navigating Uncertainty

Since our founding in 1977, Westfield Steel has successfully navigated changing economic landscapes, market fluctuations, and past tariff implementations. With nearly five decades of industry expertise, we continue to provide high-quality steel products, a reliable supply chain, and expert customer service regardless of external economic challenges.

Businesses concerned about steel pricing and availability can rely on Westfield Steel’s knowledgeable team to help them secure cost-effective solutions. Contact our steel experts today to discuss your project needs and receive a personalized pricing quote.