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An employee is seen working at a blast furnace as significant changes loom in the steel industry. In November, Thyssenkrupp Steel revealed plans to cut between 11,000 and 16,000 jobs over the next six years.
Amid discussions surrounding the steel market, U.S. President Donald Trump announced on Sunday that he would reveal new tariffs on Monday, specifically a 25% tax on steel and aluminum imports.
These proposed duties would add to the tariffs currently in place, although no specific timeline for their introduction was provided.
Steel and aluminum are crucial materials used across various sectors, notably in transportation, construction, and packaging.
In examining the potential implications of Trump’s 25% tariffs, it’s essential to identify the key players that may benefit or suffer from this decision.
The United States
Recent data indicates a significant decline in U.S. steel imports over the last decade, with a drop of 35% recorded from 2014 to 2024. Despite this overall decline, imports increased slightly by 2.5% to reach 26.2 million metric tons last year. In contrast, U.S. steel exports witnessed a 2.4% decrease between 2023 and 2024.
On the other hand, aluminum imports into the U.S. have experienced a 14% rise over the same period, while exports of aluminum have been steadily increasing since 2020.
James Campbell, an analyst at CRU, provided insights on the potential impacts of the tariffs during a CNBC interview. He suggested that the initial stages may lead to a decrease in demand, but in the long term, there could be a shift toward increased investment in the sector.
This developing story is being updated.
Source
www.cnbc.com