Americas steelmakers credit tariffs, trade defenses for stronger markets
Trade protection measures for improving steel market conditions across the Americas, steel producer executives said on second-quarter earnings calls. US steel producers have broadly backed US President Donald Trump’s 50% steel tariff, which was imposed in June 2025 and has driven up domestic prices and suppressed imports. Producers in Brazil and Mexico have also applauded ...
Steel producers across the Americas have credited trade protection measures, such as tariffs and trade defenses, for a stronger market performance in the second quarter of 2026. US steel producers have generally supported President Donald Trump's 50% steel tariff, which was implemented in June 2025, leading to higher domestic prices and reduced imports.
Similarly, producers in Brazil and Mexico have welcomed the efforts made by government officials to curb the influx of imports. The US-Mexico-Canada Agreement (USMCA) remains a key focus, with industry optimism about a potential deal.
Ternium SA, a steel producer with operations in the US, Mexico, and Brazil, reported a significant increase in its Mexican segment, with shipments up 16.7% from the previous quarter. Nucor Corp. also saw a record total of 7.1 million short tons of steel shipments in the second quarter, marking a 9.7% year-over-year increase. However, Brazilian steelmakers face ongoing challenges due to limited import levels, according to Gerdau SA CEO Gustavo Werneck da Cunha.
The company is awaiting the outcome of antidumping investigations on long and flat steel products, scheduled for the second half of 2026. Despite these challenges, higher pricing and increased domestic sales in Brazil offset the slowdown in steel sales.
The steel industry's improved financial performance is evident in the earnings calls, with Ternium reporting a 60% rise in net income attributed to equity holders, Nucor recording a 91.7% increase in net earnings for stockholders, and Steel Dynamics, Inc. achieving a 78.6% growth in net income attributable to the company. US steel prices have also experienced notable increases, with Platts recording a 23.7% rise in Mexican domestic hot-rolled coil and a 46.3% increase in the US HRC EXW Indiana price.
Although the US, Canada, and Mexico have not yet reached an agreement to renew the USMCA, Gerdau remains optimistic about the future negotiations, believing that positive outcomes are more likely than negative ones.
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