Political, regulatory, economic, and energy updates are happening quickly in the first quarter of 2025, accompanied by big announcements from major operators about upcoming planned projects. In this summary, we focus on determining the potential impacts of recent tariff announcements on supply chains.
Supply Chain Challenges
Tariffs and Domestic Manufacturing Capacity
The Trump administration has announced a planned 25% tariff on all imported steel. This tariff significantly affects the industry, especially for construction projects dependent on steel products, like steel pipe. Thse types of projects include trenchless lines, horizontal directional drilling (road boring), pipeline construction, structural pipe projects, and more. An increase in foreign steel prices could increase domestic steel demand, straining these manufacturers and potentially driving up lead times and prices for new pipe.
As of 2020, the US was the second-largest steel importer and the fourth-largest producer. Canada was the largest source of steel imports in 2021, followed by South Korea, Russia, Japan, Germany, and China. Quota limits and standing tariffs have traditionally restricted the amount of steel imported from these countries (Source: Congressional Research Service Reports, 2022).
The number of large steel mills in the United States has decreased over recent years, leading to a greater reliance on imported steel. Currently, “mini-mills” are more common for manufacturing steel products. Despite this, steel mill productivity has remained stagnant since the early 2000s.
Source: Congressional Research Service Reports, Domestic Steel Manufacturing, 2022
Current Domestic Raw Steel Production
According to the American Iron and Steel Institute (AISI), by March 22, 2025, the utilization rate of domestic manufacturing capabilities was 74.3%, or 1.65 million net tons. This is lower than the same time last year, when it was 76.4%, or 1.70 million net tons.
It may be too soon to tell what the long term impacts of the tarrifs will be on domestic steel manufacturing, and if these numbers reflect the impact of the new steel tarrifs.
Addressing Capacity Constraints
With the anticipated increase in demand for steel pipeline products, domestic manufacturing capacity may be insufficient, leading to higher prices and longer lead times for projects.
One potential solution is to seek alternatives to newly manufactured products to reduce project costs and expedite timelines.
One of these alternatives is surplus pipe available in the United States. These products aer immediately available, which results in bottom-line cost savings and faster project timelines.
Impacts Still To Be Determined
The true impact of tariffs on steel manufacturing capacity – and ultimately civil construction projects – remains to be seen. Regardless, stakeholders must navigate these complexities strategically to capitalize on the sector’s promising future.
View our current inventory of surplus steel here: https://cpipipe.com/pipeline-for-sale/