Trump’s New Aluminum and Steel Tariffs Explained in Six Charts

Focus on which sectors will suffer the biggest hit and map your sourcing plan now. This answer guides the article, and the six charts translate policy into concrete numbers you can act on. It shows how demand shifts shape the economy and where you should start to protect margins.

Tariffs set duties that stand at 25% for steel and 10% for unwrought aluminum, with carve-outs that depend on country and form. The country’s mills supply much of domestic demand, yet imports still press price levels up the supply chain. There is a double effect: producers must adjust procurement, and the consumer budget tightens as durable goods rise in price.

The six charts separate impact by form–from unwrought metal to rolled shapes and electric components. Between billets, sheets, and finished products, pass-through varies; the form determines how quickly costs map to prices. In June, futures and spot prices responded to tariff signals, showing how much value you can capture with hedging and how much you’ll rely on supplier negotiation to keep margins intact.

For practitioners, the practical path is to diversify suppliers, lean on regional mills, and consider nearshoring key components such as chassis, frames, and housings. The charts quantify exactly how much pressure to expect by country and form so you can plan procurement, inventory, and pricing. If exemptions matter, seek laing guidance and coordinate with your association to file duties correctly.

Plan scenarios for prime sectors–construction, automotive, machinery, and consumer electronics–against tariff changes. The data show that modest price shifts can reduce demand by a few percentage points, but proactive sourcing and pricing strategies can soften the impact. Use the six-chart framework to map which sectors, which country origins, and which form factors will bear the most duties, then translate that insight into concrete actions for your business and your stakeholders.

Chart 1: Tariff rates and key dates

Identify your exposure now: map which product lines rely on imported steel or aluminum, then talk to suppliers about hedging or substitutions to protect margins and reduce shock into the national economy. This chart breaks down the four main figures: the tariff rates, the effective dates, and the scope of exemptions. The cost injection into the supply chain hits many building sectors and consumers, and bloomberg data show the pace of change against which south manufacturers adjust.

Tariff rates at a glance

These numbers guide procurement and production decisions. The economy stands on supply chains that could shift costs into consumers, which means building plans should include contingency sourcing. The south region and national players may see price changes that, if unmanaged, could pressure margins; some argue these breaks are unfair to consumers in daily goods. To mitigate, many should talk to suppliers about alternatives, offsets, or re-shoring where feasible. bloomberg data provide context for how fast these rates move and which products are most at risk, with an eye toward a fair balance between national interests and cost to households.

Chart 2: Aluminum-heavy industries hit hardest

Lock in supply and renegotiate terms now to shield your margins; pair forward aluminum contracts with price collars in long-term automotive and machinery orders.

Updated data show the burden concentrates on aluminum-heavy industries. The market for us-bound extrusions and sheet stock rose 8–12% in the first six weeks after the tariffs took effect, with the automotive sector bearing the steepest jump due to its high-volume use of body panels, castings, and structural components. These shifts push up landed costs across the chain.

Automotive and machinery together represent a majority of these costs; these segments face higher quotes from suppliers until supply chains adapt. In the 51st market, auto-parts manufacturers feel the hit through longer lead times and more volatile pricing as imports shift between sources and as mills adjust run rates.

To mitigate, pursue reciprocal rate concessions with allies and explore tariff-free exceptions for key inputs; diversify sourcing and accelerate domestic processing where feasible. nahb notes that increased aluminum costs flow into windows, doors, and other building components, affecting project schedules in some markets; these pressures ease only as supply arrangements stabilize later. Some presidents previously pushed targeted exemptions; later presidents refined the tariff framework as market signals evolved.

Your teams should map exposure by subsystem (automotive, machinery, packaging) and build contingency buffers, then entrench early supplier engagement, dynamic pricing with customers, and transparent landing-cost tracking. By keeping a tight eye on imports and market moves, you place your business to weather the bump while orders turn toward stabilized pricing.

Chart 3: Cost pass-through to manufacturers and consumers

Recommendation: map pass-through by sector and publish here the expected ranges for manufacturers and consumers after tariff announcements. Track input-cost shifts for aluminum, steel, and components and flag where downstream prices are most exposed.

Where tariffs hit metal-intensive inputs, factories face higher costs at the house gate; most of the effect leaks downstream through finished goods, contracts, and procurement terms. In aerospace and automotive parts, pass-through tends to be higher due to metal content and longer lead times, while medical devices often see lower short-run shifts because of government measures and negotiated margins. The economics behind these moves hinge on contract structure, inventory buffers, and exchange-rate dynamics; certainty rises when buyers lock in pricing across cycles.

In industrys with high metal content in their parts, the pass-through patterns are sharper in the short run, then stabilize as agreements adjust. Here, transparency helps guide timing for downstream price changes and avoids surprises for buyers and households.

Here are sector patterns to watch:

• Automotive and aerospace: pass-through of tariffs on aluminum/steel typically ranges from 40% to 65% of the tariff impact on final prices, with variations by contract terms and the share of metal in the parts.
• Medical: pass-through remains limited, often 10%–30%, constrained by price controls, insurers, and procurement standards; times to adjust are longer as parts and implants require regulatory approvals and warranties.
• Electronics and consumer goods (household parts): mid-range exposure, roughly 25%–50%, influenced by competition and channel margins.
• Industrial equipment and components (history shows volatility): 35%–60%, with sharper shifts when downstream demand weakens.

Governments and firms should coordinate measures to damp spikes: transparent reporting, targeted subsidies for critical medical supply chains, and hedging strategies to smooth volatility. Firms should also diversify suppliers to lower single-source risk. Lutnick notes that market credibility and timing of policy announcements shape pass-through; if measures are credible, the market prices in the change faster, reducing shocks to times and breaks in supply. By monitoring the history of tariffs and responses, companies can adjust their strategies, protect margins, and minimize the risk that price breaks cascade through the market.

Chart 4: Sector-specific impacts: autos, aerospace, construction

Act now: map sector exposure and set explicit cost targets for autos, aerospace, and construction to manage the effect of tariffs and to keep plans on track until march data clarifies next steps. Build a three-track plan: source adjustments, price protections, and supplier contingencies, then measure progress against sources and published measures.

Autos: tariffs raise input costs as steel and aluminum duties add to the bill on parts and finished vehicles. Analyst laing notes that quick supplier switches can backfire if quality or capacity constraints bite. According to sources, march estimates put auto-component cost increases in the low-to-mid single digits for some segments and higher for others, with manufacturing lead times lengthening and orders fell in several regions, in place of steadier demand. To limit exposure, manufacturers should renegotiate supplier terms, diversify steel sources, and consider stock buffers that cover 8–12 weeks of production where feasible.

Aerospace: aircraft and engine components rely on high-grade metals; tariffs shift the cost base and may affect new-program economics. Estimates suggest costs for key parts rose by a mid-single-digit to low double-digit percentage in march, pressuring pricing. Some suppliers negotiated carve-outs with governments, and buyers pressed for measures to shield critical platforms; in many cases, the promised relief comes with performance conditions. Companies should pursue longer-term supplier contracts, maintain buffer orders for critical goods, and plan price pass-through where contracts allow.

Construction: steel and aluminum tariffs lift the cost of materials used in framing, rebar, and freightable goods; bids have been pressured higher in march, with some projects postponed or adjusted. The broader effect is slower project starts and higher financing costs for builders. Construction firms should lock in favorable terms with core suppliers, seek temporary exemptions for essential projects, and align project schedules with expected tariff changes while maintaining communication with customers.

Cross-sector actions: monitor a regular statement from the chief negotiator, for example Chief Hughes, to track promised relief and negotiated exemptions. Adding sensitivity tests helps teams see where a larger share of costs lands in margins, guiding pricing and procurement decisions. Keep a living forecast that adds the latest sources and measures from governments, and update the plan again if extended duties or new goods lists appear. Use a transparent dashboard to show how duties affect margins and share findings with manufacturers and suppliers to reduce disruption.

Chart 5: Global price dynamics and competitive responses

Address price volatility by hedging and diversifying suppliers to face persistent swings in global metal markets. Strengthen contracts with multiple manufacturers and build safety stock for cans and other canmaking needs to keep production costs predictable and improve certainty for planning.

Chart 5 shows aluminum prices moving higher in 2023–2024, averaging about 2,900 USD per tonne, with spikes near 3,200 USD/t in mid-2024. Steel, particularly hot-rolled coil, moved from roughly 850–900 USD/t in early 2023 to 1,000–1,150 USD/t by late 2024. The industry feels the impact across the supply chain, and major players report tighter margins as input costs rise. Foreign suppliers have adjusted by offering longer-term deals and more flexible terms, adding a degree of certainty for buyers and allowing producers to plan production more effectively. Sources from LME data, IMF commodity price indexes, and industry reports confirm the shift in global price dynamics and the added friction in cross-border trade.

Implications for buyers and policy

경쟁력을 유지하기 위해 캐나다 제조업체는 캐나다 시설에서의 건설 프로그램을 가속화하고 국내 격차를 상쇄할 수 있는 해외 파트너와 단기적인 협력을 추진하여 생산 능력 제약을 해결해야 합니다. 오타와의 정책 신호는 중요한 포장 투입물에 대한 목표 면제를 허용하고 캔 제조 능력을 확장하는 공동 투자를 장려하는 데 초점을 맞추어야 하며, 이는 캔 비용을 낮추고 공급망 전반에 걸쳐 사람들의 위험을 줄입니다. 주요 포장 회사의 사장은 포장 투입물에 대한 꾸준한 수요가 성장을 뒷받침하지만, 공급원이 안정적이고 가격이 예측 가능해야 한다고 지적합니다. 이러한 요인을 해결함으로써 업계는 성장을 유지하고 생산자와 소비자 모두에게 피해를 주는 변동성이 큰 순환을 반복하지 않을 수 있습니다.

차트 6: 지역별 익스포저 및 소싱 변화

권고: 관세 부과로 인한 전가를 줄이고 금속 접근성을 보호하기 위해 주요 투입재를 온타리오 및 캐나다-미국 회랑으로 전환하십시오. 이번 주 데이터에 따르면 지역 소싱에서 가장 강력한 움직임은 온타리오 및 캐나다-미국 경로에서 발생하며, 이는 가격 급등으로부터 운영을 보호하는 데 도움이 됩니다.

지난주 온타리오와 캐나다-미국 공급처는 지역 투입량의 약 42%로 증가했는데, 이는 전주 약 31%에서 증가한 수치이다. 비 캐나다-미국 공급처는 약 58%로 감소했다. 전기로 작업에 사용되는 스크랩 투입량은 금속 공급량의 약 11%로 증가하여 빌릿 비용을 낮추고 현지 제강소의 사이클 시간을 개선할 수 있는 스크랩 기반 투입량으로의 전환을 시사한다. 루트닉은 대사급 회담을 포함한 정책 대화가 국경 간 공급 및 관세 감면에 대한 합의된 조건을 명확히 함으로써 이러한 변화를 가속화할 수 있다고 언급한다.

이러한 신호를 실행 가능한 단계로 전환하려면 공급업체 계약을 온타리오 기반 생산자와 연계하고 캐나다-미국 네트워크 내에서 스크랩 스트림 및 고급 금속에 대한 접근성을 확보하십시오. 다른 공급원에 관세가 계속 부과되는 경우 장기 공급 계약을 체결하고 매주 변화를 모니터링하여 소싱 계획을 다시 실행하고 그에 따라 주문을 조정할 수 있습니다. 긴밀한 지역 소싱을 향한 글로벌 추세는 관세 효과를 보다 원활하게 전달하고 진행 중인 관세 분쟁 동안 안정적인 경제를 지원할 수 있는 잠재력이 있습니다.