President Donald Trump’s 1 March announcement of incoming 25% tariffs on all steel products from all countries sparked both celebration and trepidation in the US market, Kallanish understands.

Zekelman Industries announced that all of its employees will receive a $1,000 bonus when the new tariffs take effect and for every year thereafter while they remain in effect.

“I am pleased to announce a $1,000 bonus for each of you as a direct result of policy changes announced by President Trump,” says Zekelman ceo Barry Zekelman in a company announcement. “This bonus will be paid as soon as the announced changes go into effect and will be paid annually so long as the policies remain in effect. Together, we have sacrificed and worked hard to become the best pipe and tube manufacturer in the world. The policies announced today will have a tremendous positive impact on our ability to compete and thrive. The playing field is being levelled and WE WILL WIN IN A FAIR FIGHT [sic].”

A tubular buyer – and potential customer of Zekelman – says the tariffs’ implementation dates will be the biggest factor for the short-term market.

“Import market penetration will suffer until prices stabilise from domestic,” he says. “Some line pipe projects may get postponed. My biggest question is the effective date. There’s still lots [... of products] on the water...do they get hit when they arrive?”

He adds that at least some corners of the market are already showing their displeasure.

“Wall Street hates it, and so do the end users. I assume also the stevedore unions and trade lawyers.”

A flats' buyer says it is too early to gauge potential impact, but the tariffs as-written leave little room for error.

“Will there be exemptions?” he says. “If it is 25% across the board, it will be going too far. There is not enough steel produced in the US make up for the anticipated shortfall.”