Steel and Aluminum Imports Plummet as Tariffs Take Hold
President Trump’s doubled tariffs on steel and aluminum imports from 25% to 50%, sending shockwaves through global supply chains. The new tariffs, which took effect on June 4, 2025, are part of a broader strategy to bolster domestic manufacturing and reduce reliance on foreign metals. And the numbers tell a story of rapid contraction.
In the first five months of 2025, interos.ai data shows year-to-date shipments of steel and aluminum into the US have dropped by 51%, falling from 1.9 million to just 950,000 compared to the same period in 2024. April 2025 alone saw a staggering 75% year-over-year decline, and preliminary data for May suggests an even sharper 93% drop. While the data is preliminary and could be subject to reporting lags, the initial trend indicates drops in imports even prior to the tariff jumping by 2x in June.
Auto Sector Hit Hardest
The auto industry, encompassing vehicle manufacturing and repair, has been particularly affected by tariffs on aluminum and steel. In April alone, U.S.-based companies slashed steel and aluminum imports by 80% year over year, making it the most impacted sector among industries that typically import these products. With tariffs driving up costs for raw materials, manufacturers are facing tough decisions on pricing, production, and sourcing.
Industry Fallout and Economic Ripples
Major players are already feeling the pressure. Del Monte Foods, a canned goods giant, filed for bankruptcy citing rising packaging costs and supply chain disruptions tied to the steel and aluminum tariffs. The Consumer Brands Association states that tariffs could drive up prices on canned goods by 15%.
As the July 9 deadline looms on the 90-day tariff pause, enterprises and trade partners are scrambling to adapt. The latest trade deal was announced with Vietnam – dropping the tariff rate from 46% down to 20%. Notably, Vietnam will not engage in any reciprocal tariffs. The EU and Japan are still trying to strike deals before the July 9 deadline.
Initial signs show companies signaling moving operations and manufacturing centers to the U.S. including Honda, chipmaker TSMC and LG. However, a new auto manufacturing plant typically takes at least two years to build, meaning domestic supply likely falls short in the interim. In this climate, it is important to focus on actions, not just what is said. If the administration gets a handful of these wins off the back of tariffs, it could bolster U.S. manufacturing and investment. However, goods are facing price hikes, which are likely to be passed onto consumers and put strain on the spending power in the economy.
Whether these tariffs will ultimately strengthen U.S. manufacturing or strain consumer wallets remains to be seen, but the early data paints a dramatic picture of disruption that ripples throughout the supply chain.
Uncover Where Enterprises Are Most Exposed to Tariffs Deep into Your Supply Chain
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