New US trade policies impose a 15% baseline tariff and a 50% steel duty, prompting concerns from U.S. automakers over Japan’s favorable deal. These measures have raised manufacturing costs and disrupted global supply chains, reshaping economic and political ties.
Inflation has once again taken a central position in both economic debates and household concerns across the United States in 2025.
The United States has raised tariffs on all imported steel and aluminum from Japan to 50%, following broader increases intended to protect domestic industry and address national security concerns over foreign metal imports. Japan remains subject to these elevated rates despite a new bilateral agreement that lowers the general tariff on Japanese goods—including cars and auto parts—to 15%, as special exemptions were not extended to steel and aluminum. This move has drawn criticism from Japanese officials and U.S. automakers, who argue that the policy puts American manufacturers at a competitive disadvantage compared to their Japanese counterparts. The overall approach reflects a U.S. strategy of aggressively protecting strategic industries while seeking trade concessions in other sectors.
Effective immediately, the CSP HRC base price for the week of July 21st has been set at $900 per ton for all producing mills, with the exception of CSI. For CSI, the CSP HRC base price will be $960 per ton. This pricing adjustment reflects current market conditions and applies to all relevant transactions during the specified week.
The Government of Canada has introduced new tariff-rate quotas (TRQs) on steel mill product imports from countries without a free trade agreement (FTA) with Canada, effective June 27, 2025. These TRQs, covering five product categories—flat, long, pipe and tube, semi-finished, and stainless steel—set quarterly import limits based on 2024 levels, with any imports exceeding these thresholds subject to a 50% surtax. The measure aims to stabilize the Canadian steel market and prevent diversion of foreign steel into Canada following higher U.S. tariffs, while minimizing disruption for Canadian importers and downstream users. The quotas will be reviewed after 30 days and periodically thereafter, with administration overseen by Global Affairs Canada and the Canada Border Services Agency
President Donald Trump has announced that 30% tariffs will be imposed on imports from both the European Union and Mexico, effective August 1. The move targets two of the United States’ largest trading partners, which together account for about one-third of all U.S. goods imports. In his statements, Trump cited ongoing concerns over trade deficits with the EU and insufficient action by Mexico on border security and drug trafficking as primary reasons for the new tariffs. The administration warned that if either trading partner retaliates, even steeper tariffs could follow. This escalation marks a significant intensification of the ongoing trade disputes and is expected to have wide-ranging effects on global supply chains and consumer prices.
After a robust start to 2025 driven by consumers rushing to buy before new tariffs, U.S. car sales have begun to decline. March saw new vehicle sales at a seasonally adjusted annual rate (SAAR) of 17.5 million, but by May this pace had slowed to 15.6 million, with June expected to dip further to 15.3 million. The pre-tariff buying spree led to a 9.1% year-over-year sales jump in March, but growth slowed to just 1.4% in May as the market cooled. Total new vehicle sales for the first half of 2025 reached 8.1 million units, up 3.1% from last year, but June sales fell 5.8% compared to June 2024.
Average transaction prices (ATPs) remain elevated, now at $48,799—about $4,800 higher than inflation-adjusted pre-pandemic levels—with incentives dropping to 6.8% in May, down from 8% in December and well below pre-pandemic norms. The most pronounced impact is on vehicles under $30,000, such as the Chevrolet Trax and Nissan Sentra, which are primarily imported and face the steepest price increases from tariffs. Analysts warn that if tariffs persist, entry-level models may disappear from the market, and overall sales for 2025 are now forecast between 15.6 and 16.3 million, down from earlier estimates.
ArcelorMittal has officially canceled its ambitious plans to decarbonize two major steel plants in Germany, citing high energy prices and weak market conditions as key obstacles—even after securing €1.3 billion in government subsidies. The company stated that the economic case for hydrogen-based steelmaking, using Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) technology, is not viable under current conditions, highlighting the urgent need for stronger policy support and more competitive energy pricing in Europe. This setback underscores the significant challenges facing the steel industry’s green transition, as low-carbon hydrogen remains too costly and uncertain to support large-scale production today. ArcelorMittal’s decision sends a clear signal: without further action on energy and trade policy, the path to carbon-neutral steel in Europe remains steep. 🌍
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