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The sharp decline in steel imports signals that the Trump administration\u2019s Section 232 tariffs on foreign metals are \u201cworking as intended,\u201d Brandon Farris, executive vice president of the Steel Manufacturers Association, said in an emailed statement. Meanwhile, domestic steel production has increased by nearly 5 million tons since the start of 2025.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cThat\u2019s good for American workers, their families and their communities,\u201d Farris said.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Shortly after taking office, President Donald Trump imposed Section 232 tariffs on aluminum, steel and derivative products on Feb. 10, 2025. He later increased those tariffs to 50% on June 3, 2025, before adding copper to the list and making a number of adjustments, citing efforts to address \u201cnational security threats\u201d and \u201clow-priced foreign imports.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Earlier this week, Trump signed a proclamation that <\/span><\/span><\/span><\/span><\/span><\/span>lowered Section 232 tariffs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> on agricultural and industrial equipment and machinery from 25% to 15%. He also made it so international companies could qualify for a 10% tariff if their product was primarily made of U.S. steel or aluminum.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n In addition to tariffs, Morningstar analyst Seth Goldstein said disruptions from the Iran war are forcing companies to take on extra costs, such as fuel surcharges, and affecting their sourcing strategies.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cWe could see some importers of steel and other commodities looking to maybe wait for a resolution, wait \u2018til supply chains normalize, in order to not basically be buying inventory during what might be uptake pricing for the year,\u201d Goldstein said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n At the same time, domestic production is on the rise.\u00a0U.S. manufacturers have processed <\/span><\/span><\/span><\/span><\/span><\/span>38.93 million net tons<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> of raw steel since January, up 6.8% from the same period a year ago, according to recent preliminary data from AISI that ended May 30. U.S. Steel, Century Aluminum<\/a> and Hyundai Steel<\/a> are moving forward with plans to increase domestic steelmaking capacity.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Although the U.S. surpassed Japan to become the third-largest steel producer in the world last year, Farris said foreign competition remains.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cSome foreign steel producers are absorbing the tariff costs to maintain their foothold in the U.S. market, underscoring the need for continued vigilance in enforcing trade rules,\u201d he said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n