The US government planned a 25% tariff on metal imports from Canada and Mexico, although it is postponed for a month. If the new tariff is implemented in due time, it will impact the market immediately, raising prices and generating changes in supply.

According to Morgan Stanley, the US imported 4.5 million tons of aluminum in 2023, covering 82% of its demand, Canada and Mexico accounted for almost 60% of these imports. 

On the other hand, in 2023 the US imported 15.7 million tons of steel products, which represented 17% of its demand, Canada and Mexico occupied between 40% and 50% of these imports.

It was believed that the metal prices would rise and would cause supply problems in the short term. However, as time goes on, the market will adjust it. New suppliers could cover the demand of the US, while Canada and Mexico will look for other buyers.