According to a Wall Street Journal (WSJ) article, the Section 232 tariffs in the US have not changed the country’s dependence on steel imports.
The article pointed out that the US-based steelmakers do not produce enough steel to meet domestic demand and that more than a fifth of the country’s steel needs are met through imports. According to the American Iron and Steel Institute (AISI), steel imports in October this year increased by seven percent compared September.
As a result of the tariffs, US-made steel has become the most expensive steel in the world, enabling steel companies such as Nucor, Steel Dynamics and ArcelorMittal’s North American business to deliver higher profits. The Wall Street Journal went on to indicate that current hot rolled coil prices in the US are 70 percent higher than prices in other countries, which makes exporting steel to the US even with the tariffs still viable for European and Asian suppliers.
The higher profits have encouraged US steelmakers to consider raising their production capacities, which will add 8.3 million mt of annual production in the next few years, thereby also increasing US steel production capacity by 14 percent.