Trump’s Tariffs on Steel and Aluminum Are Bad News for American Energy
After temporarily pausing tariffs on certain Mexican and Canadian products last week, President Donald Trump is going back to the well of protectionism. On Monday, he announced a global 25 percent tariff on steel and aluminum imports. “No exceptions” for these will be given to countries, according to Trump.
The U.S. is the second-largest steel importer in the world, according to the International Trade Administration. In 2023, the U.S. imported 25.6 million metric tons of steel and exported a little more than 8.2 million metric tons. About half of the aluminum used domestically is imported and by global standards, the U.S. has a very small aluminum smelting industry. Steel and aluminum imports to the U.S. were valued at nearly $50 billion in 2024, per Bloomberg.
Taxes on imports of these materials will not only hurt the economies of other nations, including Canada—which is the No. 1 provider of steel and aluminum imports to the U.S.—Brazil, and Mexico, but they will also have a demonstrable impact on several sectors of America’s economy, including energy.
Steel—whose prices could increase by “$100 to $150 a short ton” because of the tariffs, according to an analysis from Citi Bank—and aluminum are used in everything from fossil fuels to green energy. Steel makes up 66 percent to 79 percent of a wind turbine’s mass and the World Bank estimates aluminum accounts for more than 85 percent of most solar energy components, including panels and racking.
Carbon steel forges, meanwhile, are commonly used in oil and gas pipelines because they can withstand high temperatures and pressure levels. They are also corrosion-resistan
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