Some steel producers in Canada and Mexico have announced that they have stopped sending new orders to the US. The move comes amid President Donald Trump's plans to impose 25% tariffs on Canada and Mexico by February 1. Canada's Stelco stopped its sales offers to US consumers, while Mexico-based steel suppliers also stopped taking material orders this week.
Jeremy Flack, CEO of Flack Global Metals, said that Mexican steelmakers took this action due to concerns over changing trade policies and Trump's possible actions. “That's why they're out of balance, they're worried, and they're not worried again,” Flack said.
As Trump has signaled his previously threatened 25% steel tariffs on Canada and Mexico, concerns are growing in the industry that the two countries' exemptions could expire. Canada is the largest foreign source of steel imports to the US, while Mexico ranks third.
About 27% of US steel imports come from Canada and Mexico. Cleveland-Cliffs acquired Canada-based Stelco last year. CEO Lourenco Goncalves said they would follow Trump's policies and adopt an “America first” approach.
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