Some steelmakers in Canada and Mexico have told customers they are turning down new orders from the United States over concerns that President Donald Trump will soon reimpose tariffs.
Canadian steelmaker Steelco Inc. has told U.S. consumers it has halted sales offers, according to a person familiar with the matter. Steel suppliers in Mexico also stopped taking orders for the material this week in anticipation of possible action from Trump, according to Flak Global Metals Inc., a major buyer.
Trump signaled this week that he plans to impose previously threatened tariffs of up to 25% on Mexico and Canada by Feb. 1. While the two countries are exempt from the 25% across-the-board steel tariffs imposed by the United States during Trump’s first administration, there is growing concern in the industry that the metal will not get an exemption.
“There’s a lot of fear and a shift in trade policy on the part of Mexican steelmakers in terms of their approach to this market,” Jeremy Flak, chief executive of Arizona-based steel distributor Flak Global Metals, said in an interview. “They’re out of balance because of this. They’ve gone from concerned to not concerned and then concerned again.”
Canada is the largest foreign source of steel imports to the United States, and Mexico is the third-largest, according to data from the U.S. Commerce Department. The U.S. consumed about 91 million tons of steel in 2023, with imports accounting for about 27% of total demand, according to research by Morgan Stanley.