Canadian and Mexican steel companies have stopped taking new US orders as President Donald Trump prepares to reimpose tariffs by February 1.
Stelco has suspended sales quotes to US consumers, a source familiar with the matter told Bloomberg. Mexican suppliers have also stopped processing orders this week, according to Flack Global Metals, a major buyer.
Trump plans to impose tariffs of up to 25% on Mexican and Canadian steel imports, despite current exemptions from the sweeping tariff implemented during his first administration.
“Mexican steelmakers have changed their commercial policy toward this market,” Jeremy Flack, CEO of Arizona-based Flack Global Metals, told Bloomberg. “They’ve gone from concerned to unconcerned to concerned again.”
Canada supplies the largest share of US steel imports, with Mexico ranking third, US Commerce Department data shows. Imports made up 27% of US steel consumption in 2023, reaching 91 million tons, according to Morgan Stanley research.
The supply disruption could force US manufacturers to seek alternative suppliers at higher costs. Manufacturing experts warn of potential impacts, including potential job losses across North American steel and manufacturing sectors, increased production costs, and upward pressure on inflation.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
