US steel companies raised their product prices during the second quarter of 2025, following the Trump administration's decision to double tariffs on steel imports from 25% to 50%, according to a report from The New York Times. The report, published Tuesday, stated that the average price per ton for Steel Dynamics was $1,134 in the second quarter, up from $998 in the first quarter, while the price per ton for Cleveland-Cliffs was $1,015, up from $980 previously. Government data indicates that domestic steel prices have risen 16% since the beginning of the year. The United States imports about 20% of its steel needs, and with the tariffs rising and imports declining by 6.2% through May, domestic companies have more room to raise prices, imposing additional costs on domestic manufacturers. The report highlighted estimates from German truck manufacturer Daimler Truck, which uses significant amounts of steel in its truck and bus manufacturing, that previous tariffs added $3,500 to the cost of an average $100,000 school bus. With the tariffs raised, the company said it was more difficult to pass on the costs to customers amid declining demand. However, Cleveland-Cliffs CEO Lourenco Goncalves defended the tariffs, arguing that they supported domestic manufacturing against competitors who receive government subsidies and pay lower wages. He emphasized that the company does not import Brazilian iron ore, which invalidates the justification for exempting it from the tariffs. Analysts monitored by the newspaper also believe that American steel companies exert extensive lobbying on trade policies and take advantage of tariff protection to maximize their profits, even though the US military's steel needs do not exceed 3% of total domestic production, according to a 2018 memo by former Defense Secretary Jim Mattis.
