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International shipping could continue to feel the effect of tariffs impacting steel imports. Over the last year, the Trump Administration imposed levies on various goods shipped into the US. Along with a 10% reciprocal tariff on all countries, Trump placed tariffs on specific items, including steel, aluminum, and copper. An example was a 25% tariff hike that the president imposed on steel and aluminum imports on March 12. Last week, Trump signed a proclamation lowering these Section 232 levies on specific steel goods from 25% to 15%. This article explains the reasons for levies on steel and related products and what they mean for shipping.
President Trump originally imposed tariffs on steel imports for various reasons, including boosting domestic manufacturing. As import costs increased, US shippers began sourcing steel and similar products domestically. The amount of steel imported into the US in April was down 30% year over year. Meanwhile, raw steel production in the US rose significantly, with reports that manufacturers produced 38.93 million net tons since January. The recent escalation of the Iran conflict has also prompted companies to rethink their domestic sourcing strategies to reduce costs. Domestic shipping has benefited from reshoring production, since trucks are typically used in supply chains to move goods to their final destinations.
In addition to domestic production, Trump imposed tariffs on steel and other goods to address trade imbalances. Trump was using them as temporary leverage in trade talks for more favorable US deals. However, the levies on steel made it more costly to import into the US. Along with importers, other parts of the supply chain also felt the costs, with prices also rising for customers. Customers commonly use steel in many sectors, including machinery, automotive, construction, and energy. Since the first imposition in 2018, other countries have responded by expressing concerns and imposing their own levies. The current reduction in levies from 25% to 15% could provide temporary relief.
With the current situation affecting international shipping, shippers should be aware of what to expect when starting. Failure to understand what may impact your shipment and lead to delays or monetary loss. In addition to staying current with news and regulations, it is advisable to contact a freight forwarder. A forwarder is a person or company that acts as a middleman between the shipper and the carrier. A1 Worldwide Logistics has forwarders that provide services such as domestic and international cargo movement, customs clearance, warehousing, and more. Speak with our forwarders at info@a1wwl.com or 305-425-9752 to ensure your shipment succeeds whether exporting or importing into the US.
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