US President Donald Trump's Section 232 tariffs will reduce to 25% by this time next year, according to more than half (53%) of attendees surveyed at the recent SMU Steel Summit. The sentiment, captured at the industry’s largest North American gathering of steel industry professionals, reflects growing frustration over unpredictable trade policy and its impact on steel costs.

According to Josh Spoores, head of steel Americas analysis at CRU, “Many steel users understand the national security rationale for steel tariffs, but they also need policy that supports, not hinders, their competitiveness.”

The poll revealed that two-thirds (67%) of respondents anticipate major carve-outs or exemptions to Section 232 tariffs in the next year, particularly for products not made in the US or sourced from longstanding allies.

“Supply chains have largely been built around countries that have traditionally been key trading partners and allies of the US. There are expectations, therefore, that some form of trade will resume with these countries, featuring lower barriers than what we’re currently experiencing,” Spoores added.

“Many steel users understand the national security rationale for steel tariffs, but they also need policy that supports, not hinders, their competitiveness.”

Josh Spoores, head of steel Americas analysis at CRU.

The SMU Steel Summit, hosted by CRU, a commodities intelligence business, welcomed over 1,500 attendees from across the steel supply chain, the majority of whom were dealing with substantially higher steel and regulatory costs due to recent US tariffs.

When discussions turned towards the North American steel industry, three quarters (75%) of respondents agreed there was room for further consolidation following the US Steel/Nippon deal. “We still see room for more M&A in the industry, though it’s also likely that there will be some divestment as well,” Spoores concluded. “In cyclical markets, like steel, history has shown that some of the best operators will not only embrace opportunities to acquire businesses, but also opportunities to strategically sell some assets.”