Tariff Update
Late yesterday, President Trump signed a proclamation that officially increased the Section 232 steel and aluminum tariffs to 50% from 25%, effective 12:01 today, June 4th. The only exception made in the proclamation was given to the United Kingdom with an extension until early July. Further exemptions could potentially be granted in the future; however, as of now, this will dramatically curb the future flows of both steel and aluminum from outside of the US into the US. In addition, all materials in transit are potentially affected by this proclamation.
Looking ahead, with this change in the landscape of supply, buyers will have to rely on domestic supply to meet their needs. As seen earlier in the year, different steel products in the US rely on import supply to different extents. Rebar is one product that is less reliant on imports than many of the others. There is no doubt there will be disruptions in the next 30-90 days; however, long term, rebar supply and capacity in the states should be able to meet demand. Pricing may be subject to change based on where the supply and demand meet.
We will continue to update the changes that occur in the rebar market. Have a good day.
