Many U.S. industries expect steel prices to rise

The US is the largest steel importer in the world, importing 34.6 million tonnes this year, according to a recent report from the US Department of Commerce. Canada was the top exporter at 17%, followed by Brazil and South Korea. About half of the steel products imported into the United States are used for the construction of buildings and infrastructure.

The tariffs announced by President Donald Trump in March involve a 25 percent tax on imported steel and a 10 percent tax on imported aluminum. Brazil, Argentina, Australia, South Korea, Canada and Mexico received temporary exemptions until May 1 in exchange for certain conditions, including quotas on exports to the United States. The exemptions granted to date have affected about half of all steel imports to the United States.

For these major US trading partners, trade details are being worked out, leaving many economists and industrialists still guessing at the final implications. However, there are fears that tariffs will start a trade war that will ultimately negatively affect many industries, including agriculture.