Implications of Trump's 25% Tariff on Steel & Aluminum Imports for New U.S. LNG Projects
The 25% tariff on steel and aluminum imports will significantly affect six LNG projects in the planning stage and five under construction & increase their cost by more than 10%! (with 5 charts)
In response to Ontario’s Premier Doug Ford's decision to impose a 25% surcharge on electricity exports to the United States, President Trump announced a plan to apply an additional 25% tax on all steel and aluminum imports from Canada, doubling the total taxes on imported Canadian steel and aluminum to 50%. Although Trump paused this additional tax after six hours, his initial decision to apply a 25% tax on all imported metals risks increasing prices on various consumer and industrial goods in the American market. For the gas industry, it could impact the massive LNG expansion and new projects in the United States, which rely heavily on steel and aluminum for fabricating piping and cryogenic facilities.
Below we discuss the role of steel and aluminum in the construction of LNG terminals, their costs, and the impact of the 25% tariffs on imports of both products.