Canadian, Mexican Steelmakers Halt US Orders Amidst Tariff Concerns
Amidst President Trump's threat to reimpose tariffs on steel imports from Canada and Mexico, steelmakers in both countries are refusing new orders from US customers.
Stelco, a Canadian steel producer, has paused sales quotes to the US, industry sources say. Mexican steel suppliers have also suspended order-taking as they anticipate potential action from the US government.
Trump plans to impose tariffs of up to 25% on Mexican and Canadian steel by February 1. While both countries were previously exempt from a 25% steel tariff during Trump's first term, industry experts fear the exemption may be removed.
According to the US Commerce Department, Canada is the top foreign steel exporter to the US, with Mexico ranking third. The US consumed approximately 91 million tons of steel in 2023, with imports accounting for 27% of total demand.
Cleveland-Cliffs Inc., the US parent company of Stelco, declined to comment. CEO Lourenco Goncalves stated that he will comply with Trump's policies, acknowledging that he acquired Stelco with full knowledge of its location in Canada.