Who sells the most steel and aluminium to the US and who is facing tariffs?

President Donald Trump announced plans to impose a 25% tariff on all steel and aluminum imports, effective March 12, during a signing ceremony in the Oval Office. The tariffs, which apply “without exceptions or exemptions,” aim to protect domestic industries, reduce trade imbalances, and promote U.S. manufacturing. At the same time, Trump threatened to impose reciprocal tariffs on countries that levy duties on U.S. goods. The move has significant implications for global trade, particularly for the top suppliers of steel and aluminum to the U.S.

Steel is a critical material used in construction, manufacturing, transportation, and energy sectors due to its strength, durability, and versatility. Roughly a quarter of all steel used in the U.S. is imported. Between March 2024 and January 2025, the top suppliers of steel to the U.S. were Canada, Brazil, and Mexico, providing nearly 49% of steel imports. Canada alone supplied 22% (5.47 million tonnes) of the 25 million tonnes of imported steel, followed by Brazil with 15% (3.74 million tonnes) and Mexico with 12% (2.9 million tonnes). Other key suppliers, such as South Korea, Vietnam, Japan, Germany, Taiwan, the Netherlands, and China, accounted for 30% of U.S. steel imports. These imports highlight the U.S.’s reliance on foreign steel to meet domestic demand.

When it comes to aluminum, the U.S. is even more dependent on imports, with roughly half of its aluminum coming from foreign suppliers. Between March 2024 and January 2025, Canada was the largest supplier, providing nearly 40% of U.S. aluminum imports, totaling nearly 3 million metric tonnes. The United Arab Emirates, China, South Korea, and Bahrain rounded out the top five suppliers. Aluminum, a lightweight and versatile metal, is widely used in the automotive and aerospace industries, as well as in packaging for food and beverages due to its preservative and recyclable properties.

Tariffs are government-imposed taxes on imported goods and services, paid by businesses bringing those goods into the country. They are designed to protect domestic industries by making foreign products more expensive, which can reduce demand. However, tariffs can also drive up costs for consumers and disrupt global supply chains. Trump has repeatedly used tariffs as a tool to protect U.S. industries, reduce trade deficits, and encourage domestic manufacturing. In March 2018, he imposed 25% tariffs on steel and 10% tariffs on aluminum, leading to initial price surges in the U.S. steel market and a decline in low-priced imports. However, by the end of 2019, steel prices had dropped more than 40% due to retaliatory tariffs from trading partners and weakening demand, particularly in the automotive and construction sectors.

The new tariffs could have significant implications for the U.S. steel and aluminum industries. Steel and aluminum are essential materials in construction, automotive manufacturing, machinery production, and electronics. If implemented, the tariffs could raise costs for manufacturers and disrupt existing supply chains. While U.S. manufacturers might turn to domestic producers to avoid higher import costs, they would likely face increased prices, which could trickle down to industries like car-making and housing. A report by the London Stock Exchange Group’s Metal Research team suggests that the impact on global metal trade could be substantial, with potential ripple effects across the economy.

China, the world’s largest steel producer, accounting for more than half of global production, is also likely to feel the effects of the tariffs. While China is not a major direct supplier of steel or aluminum to the U.S., its exports are often processed in other countries, such as Vietnam, before being imported into the U.S. This indirect impact means that China’s steel and aluminum industries could still be affected by the tariffs, despite not being primary suppliers to the U.S. market. The tariffs also reflect broader trade tensions and the U.S.’s efforts to reduce its reliance on foreign metals, potentially reshaping global trade dynamics.