U.S. steel prices hit the highest level in over four years! Trump’s tariffs restrict imports, benefiting steelmakers while putting pressure on data center developers

According to Jinse Finance APP, in the context of President Trump imposing tariffs to restrict foreign supply, U.S. steel prices have climbed to their highest level in over four years—this has boosted domestic producers but pushed up costs for American manufacturers. Hot-rolled coil, a widely used form of steel, is the benchmark price indicator in the U.S. According to Fastmarkets data, its price has been on the rise for the past year, increasing 52% to $1,255 per short ton. The last time this level was reached was in May 2022.

Inflation is a major challenge for Trump’s Republican Party ahead of the midterm elections; this round of steel price increases highlights the impact of tariffs and his efforts to revive the U.S. steel industry. While it benefits domestic steel mills and steelworkers, it has become a burden for manufacturers, builders, and data center developers.

Josh Spoores, head of steel research at consulting and data firm CRU Group, said that restrictions on steel imports, along with “continuously evolving trade policies with key partners such as Canada and Mexico, have prompted buyers to limit import orders, resulting in supply shortages.”

The U.S. is a net importer of steel, but this year the volume of overseas supplies arriving has sharply declined. According to the American Iron and Steel Institute, finished steel imports dropped 14% in the first nine months of 2026 to about 13 million tons. As a result, the market share of imports in the U.S. domestic market fell from 19% in the same period last year to 16%.

As steel mills reduce production for routine maintenance, domestic supply in the U.S. is expected to tighten further by the end of the year. Fastmarkets forecasts that more than 1 million tons of output will be affected from September to December.

Analysts point out that steel buyers should expect prices to continue rising gradually, as the cost of ferrous scrap—a key steelmaking raw material—is already increasing, and this trend is emerging earlier than usual in the final months of the year. Negotiations between producers and customers over 2027 contracts currently favor the mills, and discounts are likely to be lower than in recent years.

U.S. steel companies, including Nucor (NUE.US), Cleveland-Cliffs (CLF.US), and Steel Dynamics (STLD.US), are benefiting from stronger domestic pricing and reduced foreign competition. As the leading producer of this industrial metal, Nucor’s stock price has risen more than 50% so far this year. The sector will announce third-quarter results in the coming days and weeks, and analysts expect to see increases in both sales and profits.

Last month, following Trump’s announcement that he would build a $15 billion Mesabi Metallics plant in Iowa (planned to begin operation around the end of this decade with an annual capacity of 10 million tons), steel stocks briefly fell.

U.S. hot-rolled coil is typically the most expensive in the world, and its premium compared to global markets is widening. Currently, its price is about two-thirds higher than Europe’s and nearly three times that of China.

Trump’s 50% tariff on imported steel has disrupted trade with Canadian producers. Cleveland-Cliffs, one of the largest U.S. steel companies, announced last month that it would indefinitely idle part of its Canadian subsidiary Stelco’s operations, potentially affecting up to 500 workers.

This move has sparked a confrontation with the Canadian government. Canada has threatened legal action against Cleveland-Cliffs, citing employment promises made by the company when it acquired Stelco for 3.4 billion Canadian dollars ($2.4 billion) in 2024.