Tariffs on imported steel and other products have generated considerable market uncertainty. It’s challenging to operate when regulations change so frequently. For many U.S. manufacturers—including our domestic fabricator customers—this constant shift has created real instability in pricing, planning, and competitiveness. Many companies across the stainless supply chain have even slowed or paused purchases altogether while they wait for clarity on tariffs, pricing, and supply stability. 
The Trump 1.0 Steel Tariffs — a 25% duty on imported steel from most countries — went into effect in March 2018 under Section 232, citing national security concerns. These tariffs covered all stainless plate grades in our inventory as well as nickel alloy grades A330 and A800 but excluded other nickel alloys and titanium plates. U.S. mills increased prices almost immediately after the tariffs were implemented. Some countries, such as South Korea, faced strict quotas instead of tariffs. Although steel imports dropped initially, global markets adapted over time, and shipments of steel-containing products not subject to tariffs surged into the U.S.
Our domestic fabricator customers who produce equipment for domestic industries felt the impact most strongly; they had to use higher cost U.S. made steel or imported steel subject to a tariff, while competing against foreign manufacturers who could access cheaper, tariff-free steel. This loophole created an uneven market for our U.S. customers, directly weakening domestic fabrication and making it harder for U.S. manufacturers to compete on a level playing field.
When President Biden took office in 2020, he maintained these steel tariffs but switched to a tariff-rate quota (TRQ) system in 2022. Under TRQs, steel could be imported without tariffs if quarterly and annual volumes didn’t surpass country-specific quotas based on average annual import levels from 2015 – 2017. For most countries, this change effectively ended steel tariffs during Biden’s term since import volumes remained below the relatively high quotas.
In February 2025, President Trump removed the TRQ system and reinstated the 25% steel tariffs. The Trump 2.0 Steel Tariffs expanded coverage to include certain steel derivative products, in an attempt to close the previous loophole that allowed foreign manufacturers to avoid tariffs by importing finished steel-containing products without a tariff. Just a few months later, in June 2025, the steel tariffs were increased to 50% for most countries. While the list of affected steel derivative products is still relatively small, it is gradually growing as the Department of Commerce has introduced new procedures for adding items. This is an attempt to correct the competitive imbalance created during the Trump 1.0 Steel Tariffs cycle, but the slow rollout still leaves gaps—and continued uncertainty—for domestic manufacturers.
Beyond steel, President Trump also implemented new reciprocal tariffs on most other imported goods in April 2025. These rates initially varied by country but are currently at 15% for most nations. These reciprocal tariffs do not apply to steel covered by the Section 232 steel tariffs, but they do apply to the nickel alloy grades not covered by the steel tariffs, and to the non-steel components of imported steel derivative products. The Supreme Court recently heard arguments about presidential authority to impose these reciprocal tariffs and will rule on their legality soon.
Frequent changes to tariff policies have reduced U.S. steel demand, with many projects being postponed until regulatory clarity returns. The stop-and-start nature of these policy shifts has created real chaos in the marketplace—customers are holding back, suppliers are resetting expectations, and no one wants to make long-term commitments in an unpredictable environment.
We are working to limit the effects on our customers by sourcing from alternate suppliers, negotiating with international mills to lower prices, and reducing our margins to offset higher costs. However, the reality is that no supplier—ourselves included—can absorb every cost increase indefinitely. While we continue to push mills to share in the burden, the combination of tariff-driven prices and global supply constraints creates limits on what can realistically be absorbed.
Our goal remains the same: minimize the impact on our customers as much as possible, even when the rules change overnight. While we can’t eliminate tariff-driven cost pressures, we remain committed to transparency, stability, and protecting our customers from the worst of the volatility wherever we can. Monitor the upcoming Supreme Court decisions on reciprocal tariffs and watch for further action on steel tariffs from the Trump Administration.
Despite the short-term volatility, long-term stainless demand remains strong, driven by infrastructure needs, defense applications, and equipment designed for extreme environments where stainless plate is essential.