Understanding Metal Tariffs and Their Role in Global Trade
Since June 4, 2025, when the U.S. federal government raised tariffs on imported steel and aluminum from 25% to 50% in an attempt to bolster domestic metal production, these tariffs have had a financial ripple effect on the critical industries that depend on these materials. The drop in demand for imported metals in the United States has caused price volatility for raw materials and increased costs for many finished goods. This may leave many manufacturers wondering how these tariffs will affect their businesses, and if there’s anything they can do to prepare for potential supply chain limitations going into 2026.
Here, we’ll explain metal manufacturing tariffs and their role in trade, as well as how Continental Steel & Tube can help.
How Tariffs Influence Metal Pricing and Availability
Given the doubled tariffs on specific grades of imported metals, manufacturers utilizing high-performance alloys such as Aluminum 7075 (aerospace/defense) and 304/316 Stainless Steel (corrosive environments) must recalibrate their supply risk. As a result, this could significantly reduce material availability, as the U.S. relies on imports for about 50% of its aluminum needs and 25% of its steel supply. Increased demand for limited domestic supplies of these metals could lead to higher domestic metal prices, thereby increasing costs for manufacturers and end customers alike.
While domestic producers will likely ramp up production to meet growing demand, this will take time, and limited availability and price volatility could cause problems in the meantime. Even metals not covered by these tariffs could be affected, as manufacturers may try to substitute other metals when stainless steel and aluminum are not available. Potential shortages may compel engineers to reconsider specifications, particularly for high-temperature/high-corrosion alloys like Inconel, Monel, and Titanium Grade 2/5 that lack viable substitutes, driving increased demand for certified domestic stock.
Industries Most Affected by Metal Tariffs
Some industries will be affected more than others by disruptions in the metal supply chain, particularly in sectors where using alternatives to stainless steel and aluminum is not a practical option. A few of the industries most affected by metal tariffs include:
- Aerospace. The aerospace sector uses a significant amount of steel and aluminum in the construction of planes and other aircraft. Metal tariffs could result in increased costs for commercial airlines and potentially higher fares for passengers.
- Defense. Higher aerospace construction costs could also put a strain on organizations in the defense sector, as the cost of doing business increases due to volatility in the stainless steel supply chain.
- Construction. Another sector that uses a lot of steel is construction, including for framing, doors, windows, and bracket components. This could lead to a significant increase in building costs.
- Automotive. The automotive industry is one of the largest consumers of steel and aluminum, making this industry particularly vulnerable to supply chain disruptions and price increases. Metal manufacturing tariffs could result in higher car prices (unless manufacturers absorb the cost of tariffs), which could have ripple effects on used car prices as well.
Strategies for Maintaining Supply Chain Stability
While steel and aluminum tariffs could cause problems for manufacturers in the short term as the supply chain adapts to an increase in demand for domestic metals, there are steps that you can take to maintain supply chain stability during this period of uncertainty, including:
- Adjusting inventory levels. By adjusting your inventory buffers, you increase safety stocks of critical materials and prevent potential production delays, supply chain disruptions, and price spikes.
- Using other metals. While this may not always be possible, it may be worth exploring other metals you can use for your application that may be less prone to price volatility and supply chain disruptions.
- Mitigating risk through certified stock and value-added processing. This involves partnering with an AS9120B-certified distributor that can provide materials with full traceability and reduce fabrication lead times by performing precision, in-house processes such as trepanning, gun drilling, and solution heat treatment.
Continental Steel & Tube: Your Partner for Metal Supply Solutions
With tariffs on most imported steel and aluminum up to 50%, supply chain disruptions and price volatility could become a real problem going into 2026 for manufacturers that rely on these metals. This makes it important to work with a supplier you can rely on to provide the metals you need, even amidst supply chain uncertainty.
To navigate the supply chain disruptions caused by shifting tariffs, manufacturers require a technical partner focused on material compliance and lead-time mitigation. Continental Steel & Tube supports these requirements by providing standard and specialized metals guaranteed to exact specifications. By combining decades of distribution expertise with value-added services, we help ensure your production schedules remain stable while minimizing exposure to market volatility.
Contact us today to see how our team can help you maintain supply chain stability, or request a quote to start your order.