President Donald Trump's tariffs on imported steel are restricting foreign supply as U.S. hot-rolled coil prices climbed to $1,255 per short ton, the highest level since May 2022, according to Bloomberg. Hot-rolled coil is one of the most commonly used steel products and acts as a pricing benchmark in the U.S.
Prices have risen 52% over the past year. The increase has benefited American steel mills and their workers while adding to expenses for data-center developers, builders and manufacturers, according to Bloomberg.
Finished steel imports declined 14%, to roughly 13 million tons, from January through September of 2026, according to Bloomberg, citing the American Iron and Steel Institute. Imports' portion of the U.S. market fell to 16%, compared with 19% over the comparable stretch a year earlier.
Josh Spoores, steel research principal at CRU Group, said buyers have limited import orders because of restrictions and "a constantly evolving trade policy with key partners such as Canada and Mexico," according to Bloomberg. He said that has created a supply shortage.
Domestic supply is likely to get tighter as the year closes, since mills are scheduled to take capacity offline for regular upkeep, according to Bloomberg. Maintenance work from September through December is forecast to affect output of more than 1 million tons.
U.S. hot-rolled coil is priced at a premium of roughly two-thirds over Europe's and almost triple China's, according to Bloomberg. China continues to export steel in near-record quantities.
Nucor, the largest U.S. steel producer, has seen its stock rise by over 50% so far this year. Cleveland-Cliffs and Steel Dynamics have also gained from firmer U.S. pricing and less competition from abroad, according to Bloomberg.
The 50% tariffs have upended commerce with steelmakers in Canada, according to Bloomberg. Cleveland-Cliffs announced last month that it would pause part of the work at Stelco, its Canadian subsidiary, with no restart date set, a step that could affect up to 500 workers. The Canadian government has warned it may take the company to court over job-related pledges it made when it purchased Stelco in 2024 for C$3.4 billion ($2.4 billion).
In August, the U.S. was considering cutting tariffs on Canadian steel and aluminum to 25% from 50% as part of a bilateral trade agreement under negotiation. The specifics had not been finalized at that time.
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