US Metals Policy Creates 'Manufactured Scarcity' Amid Skyrocketing Prices
The US metals policy has been criticized for creating 'manufactured scarcity' according to an analysis by PPI. The Section 232 tariffs imposed on steel and aluminium since 2018 have risen to 50%, affecting not only domestic but also imported metal and semi-finished copper from Canada and Mexico. As a result, prices in the US have skyrocketed, with steel averaging $758 USD/tonne in January 2025, compared to $456 USD/tonne globally. By June 2026, this gap had widened even further, with US steel prices reaching $1,208 USD/tonne against $490 USD/tonne worldwide.
The tariffs have also had an impact on aluminium prices, which now stand at around $4,500 USD/tonne. Despite these high prices, output has barely moved, remaining at 82 million tonnes in recent years, below the pre-2018 norm of 84 million tonnes. Apparent consumption has also fallen to 95 million tonnes, down from the 2000-2017 average of 104 million tonnes.
The PPI analysis contrasts this with the CHIPS programme's approach under the Biden administration, which allocated $54 billion USD to boost manufacturing. The data suggests that the US metals policy has had a negative impact on manufacturing, with its GDP share falling from 3.1% in 2017 to 2.6% by early 2026.