• Skip to main content

    Analysis

    CRU: Trump tariffs could stimulate steel demand

    Written by Josh Spoores


    Now that the dust has settled from the US election, as have the immediate reactions in the equity, bond, and commodity markets, this is a prime opportunity to look at how a second Trump presidency might affect the US steel market. The focus of this Insight is to look past the near-term disruptions and reactions surrounding the return of President Trump and analyze the potential for a meaningful impact that might come over the next two to four years of his presidency. 

    On the campaign trail, President Trump consistently spoke of using tariffs as the primary tool of his economic platform. He advocated for the liberal use of tariffs as a means to support manufacturing and economic growth in the US, as well as a way to lower or end income taxes. While the latter of these is not economically feasible, the former does have the potential to create a positive impact, though it will take time and patience. That said, per CRU’s initial comments at the time of the election, tariffs have the potential to stoke inflation and damage longer-term prospects for spending. Equally, retaliatory behavior and a ‘trade war’ would have a seriously negative impact on global and US growth. However, the US impacts would be less due to trade being a much smaller proportion of its economy.

    Josh Spoores

    Read more from Josh Spoores

    Latest in Analysis

    SMU Survey: Current Buyers’ Sentiment rises slightly as Future Sentiment dips

    SMU’s Current Steel Buyers’ Sentiment Index ticked up slightly this week, while Future Sentiment fell, according to our latest market survey. Every two weeks, SMU polls thousands of steel-industry executives, asking them to rate their companies’ chances of success today and also three to six months down the road. We use their responses to calculate our proprietary Current and Future Steel Buyers’ Sentiment Indices, measures tracked since 2008.

    galvalume steel coil

    SMU Survey: Mill willingness to negotiate price at lowest levels since 2021

    The majority of steel buyers responding to our latest market survey reported that mills continue to hold a firm grip on prices. The share of buyers reporting that mills were negotiable fell this week to the lowest rate seen in over five years. Every two weeks, SMU surveys service center and manufacturer buyers asking if mills are negotiable on new spot sheet and plate orders. In this week’s survey, just 3% of respondents said mills were willing to talk price to secure an order (Figure 1). This is down 11 percentage points from our mid-October survey.