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On May 30th local time, former US GL-A36 steel President Donald Trump announced on the social platform Truth Social that tariffs on imported steel and aluminum products would be increased from the current 25% to 50%, and would officially take effect on Wednesday, June 4th. The basis for the imposition of tariffs this time is Article 232, which allows for restrictive measures on imported goods on the grounds of national security.
In his statement, Trump stated that the steel and aluminum GL-A36 steel industries in the United States are making a strong comeback, and this tariff adjustment will further boost the development of related industries and bring benefits to related workers. Despite recent setbacks at the judicial level with its "reciprocal tariffs" policy proposed on April 2nd, the 232 measures still have operability due to their relatively solid legal foundation.
Data shows that prior to the announcement, the Transaction Premium Midwest for steel and aluminum trading in the Midwest of the United States reached 38.50 cents/pound on May 30th, with a cumulative increase of 63.8% since the beginning of the year; The Indiana ex factory price of hot-rolled coil (HRC) in the United States has risen to $840 per short ton, an increase of 21.7% from the beginning of the year.
ClearView Energy Partners, a market GL-A36 steel institution, pointed out that this policy may indicate that the US government will rely more on Section 232 to deal with trade frictions in the future. If the White House continues to maintain a tough stance on product exclusion, tariff increases may also constrain projects that heavily rely on imported steel, such as energy and infrastructure.
