US Tariffs Go Live: 50% on Steel & Aluminum Impacts B2B Supply Chains

US Tariffs Go Live: 50% on Steel & Aluminum Impacts B2B Supply Chains

Today marks a critical juncture for B2B supply chains reliant on global metal markets, as the United States formally implements a 50% tariff on most imported steel and aluminum products. This doubling of duties from the previous 25%, enacted via an executive order signed by President Donald Trump, is effective from 00:01 AM ET on June 4, 2025. This aggressive move, based on Section 232 of the Trade Expansion Act of 1962 (which allows tariffs on national security grounds), is designed to protect and revitalize the domestic US steel and aluminum industries.

The immediate impact on B2B transactions is substantial. Manufacturers, construction companies, and other industries in the US that heavily rely on imported steel and aluminum as raw materials will face significantly increased input costs. This, in turn, can lead to higher production costs for finished goods, potentially driving up prices for B2B buyers and, eventually, for consumers. For example, sectors like automotive, machinery manufacturing, and crucially, construction (directly relevant to Shiv’s Assets Group’s TMT Bars and other building materials) are expected to face hundreds of dollars in additional material costs per tonne. The aim is to make domestically produced metals more competitive, but it also creates a significant cost burden for US businesses using these imports.

The global ripple effects are already being felt. Major trading partners like Canada and Mexico, historically large exporters of steel and aluminum to the US, are expected to be significantly impacted. While the United Kingdom remains the sole country explicitly exempt from the new 50% tariff (continuing at 25% due to ongoing bilateral trade negotiations), other nations are now scrambling to re-evaluate their export strategies and diversify their customer bases. Many steel and aluminum exporting nations will need to seek new markets, potentially intensifying competition and affecting pricing in other regions not subject to these tariffs. This could lead to a global reallocation of metal supplies and new trade routes emerging.

For B2B players like Shiv’s Assets Group, which exports TMT Bars and other metal-related building materials, this tariff hike presents a dual challenge and opportunity. While direct exports to the US from India (which exported $4.56 billion worth of iron, steel, and aluminum products to the US in FY2025) will face severe competitive disadvantages due to the 50% tariff, it also means a potential shift in global sourcing. US buyers might look to domestic suppliers or other exempted countries, but if domestic capacity is limited or uncompetitive, it could create opportunities for alternative, non-tariff-impacted sources. Conversely, Indian exporters might need to intensify their focus on other global markets, including those within the expanding BRICS bloc or other regions not subject to these punitive tariffs. The increased costs of these essential B2B commodities will necessitate careful review of pricing strategies and supply chain resilience for any business dealing with these materials, urging them to find efficiencies or new markets to offset the impact.