The US government’s decision to double its steel and aluminium import tariffs to 50% on June 3, which took effect immediately, caught many buyers off guard. The increase applies to all countries except the United Kingdom, which retained its 25% rate until July 9 – the deadline for negotiations of its trade deal with the US.  

Some buyers, who had shipments en route to the US, were forced to renegotiate prices, with no exemptions or appeals process available. Others rushed to cancel orders with their overseas suppliers. Several respondents told MEPS that the doubling of Section 232 import tariffs has made importing “virtually impossible”.   

Market participants reported a wave of bankruptcy filings, particularly among foreign-owned automotive parts manufacturers and metal distributors with US operations, citing increased financial strain caused by the intensifying trade restrictions.   

Domestic mill bookings remain at a low level, despite expectations that increased tariffs will tighten supply. Delivery lead times are short for most standard size commodity grade coils, at four to five weeks. Buyers can afford to wait before making purchasing decisions. Inventories are adequate, and material can be sourced from stock at competitive prices. However, the growing uncertainty around US trade relations continues to dampen confidence and purchasing activity.    

Shock price increase announced by NAS  

On June 13, North American Stainless (NAS), the country’s largest stainless steel producer, surprised buyers with the announcement of price rises applicable to shipments from July 1, 2025. All new and outstanding quotations are subject to the changes, it said. The rises cover a wide range of hot and cold rolled flat and long products and grades, and include adjustments to some extras.   

The functional discount for grade 304 cold rolled coils and sheets has been reduced by eight percentage points. Grade 316 and most other austenitic grades, along with grade 430 cold rolled coil and sheets, have had their functional discount reduced by nine percentage points. These announced discount cuts equate to base price rises of USD310 per tonne on grade 304 material, USD464 per tonne on grade 316 and USD242 per tonne on grade 430.  

The announcement increases its grade 304 hot rolled coils and sheet prices by USD298 per tonne and grade 316 by USD441 per tonne. Its grade 304 hot rolled plate prices have risen by USD397 per tonne and grade 316 by USD551 per tonne as a result of the changes.