If you work in construction, fabrication, or manufacturing, you've probably noticed your material costs climbing over the past year. You're not imagining it — and you're not alone.

In June 2025, tariffs on imported steel and aluminum doubled from 25% to 50% under Section 232. The ripple effects have been hitting hard ever since, with steel mill products up over 20% and aluminum mill shapes up 33% year-over-year as of January 2026.

So what does this mean for your next project? And more importantly, what can you do about it? Let's break it down.

What Happened: The 2025 Tariff Increase

On June 4, 2025, President Trump signed a proclamation doubling Section 232 tariffs on imported steel and aluminum — jumping from 25% to 50%. The stated goal was to protect domestic steel production and reduce reliance on foreign suppliers.

The immediate effect? Import prices surged, and domestic mills followed suit with price increases of their own. According to the Associated General Contractors of America, steel mill products rose 20.7% and aluminum mill shapes rose 33% from January 2025 to January 2026 — the largest year-over-year increases since the supply chain disruptions of early 2022.

How This Affects Your Bottom Line

Whether you're a general contractor, a small fabrication shop, or a farmer building a new equipment shed, these increases hit differently depending on what you're buying and how you're buying it.

Here's what we're seeing across our customer base:

Structural steel projects are seeing 15-25% higher material costs compared to early 2025
Aluminum-heavy builds (handrails, architectural panels, equipment enclosures) are getting hit hardest with the 33% jump
Stainless steel has seen more moderate increases, but specialty alloys are harder to source
Lead times on certain imported products have stretched, making planning more difficult
Fabricators are signaling 10-12% pre-summer price increases on top of current rates

For a typical commercial construction project, industry analysts estimate tariff-related cost increases of 5-25% depending on material type, with an aggregate impact of roughly 8% on overall construction costs.

The 2026 Outlook: What to Expect

The short answer: prices are likely staying elevated.

Industry forecasts point to a stable-to-slightly-rising price environment through 2026. Domestic hot-rolled coil is expected to hold in the low-to-mid $800s per ton, with potential upward pressure into mid-year. U.S. steel demand is forecast to grow about 1.8% in 2026, driven by pent-up residential construction demand and infrastructure spending.

Key factors to watch:

Tariff policy — No signs of rollback in 2026. These rates are likely here to stay for the foreseeable future.
Domestic production — U.S. mills are running at disciplined capacity, keeping supply tight and prices supported.
Infrastructure spending — Federal infrastructure dollars are flowing into projects across the Pacific Northwest and beyond, adding demand pressure.
Interest rates — If rates ease further, expect more construction activity and even tighter steel supply.

The bottom line: waiting for prices to drop significantly isn't a realistic strategy right now.

7 Ways to Control Your Steel Costs in 2026

You can't control tariff policy, but you can be smarter about how you buy. Here are practical strategies we recommend to our customers:

1. Buy Domestic from the Start

With a 50% tariff on imports, the price gap between domestic and foreign steel has narrowed significantly — and in many cases disappeared entirely. Buying domestic means no tariff surprises, shorter lead times, and more predictable pricing. Ram Steelco stocks domestic steel and aluminum from trusted U.S. mills.

2. Lock In Pricing Early

If you have a project on the horizon, get your quote now. Material prices can shift week to week, and locking in pricing early protects your budget. Our online quote request makes it easy to get fast pricing on any order.

3. Right-Size Your Material

Over-specifying is one of the most common (and expensive) mistakes we see. Do you really need A572-50 when A36 will do the job? Is 1/2" plate necessary, or will 3/8" meet your load requirements? Our sales team can help you find the right grade and thickness to meet spec without overbuying.

4. Use Processing Services to Reduce Waste

Instead of ordering full-length stock and cutting on-site, let us process your material to spec. Our laser cutting, plasma cutting, saw cutting, and shearing services mean you get exactly what you need — no scrap, no waste, no extra cost. That efficiency adds up fast when material prices are this high.

5. Take Advantage of Low Minimum Orders

Unlike big distributors that require large minimum orders, Ram Steelco has low minimums on most products. This means you can order what you need for each phase of your project without tying up capital in excess inventory.

6. Consolidate Your Orders

On the flip side, if you have multiple upcoming projects, consolidating your material orders can earn better per-unit pricing. Talk to our team about volume pricing for larger or recurring orders.

7. Plan Ahead for Delivery

With lead times stretching on some specialty items, ordering early gives you more options. We offer next-day delivery in most areas of Oregon, so once material is in stock, we can get it to your site fast.

Why Local Matters More Than Ever

In a high-tariff environment, your relationship with your steel supplier becomes a competitive advantage. Here's what you get working with a local supplier like Ram Steelco:

Real-time inventory visibility — Know what's in stock and available today, not next month
No import delays — Everything ships from our Portland-area warehouse
Expert guidance — Our sales team has decades of experience helping customers optimize material selection and reduce costs
delivery — Next-day service in most Oregon areas
Processing under one roof — Laser, plasma, saw cutting, shearing, forming, and more — all done in-house

Since 1938, Ram Steelco has been helping Oregon builders, fabricators, and manufacturers get the materials they need at competitive prices. In today's market, that experience matters more than ever.

Get Ahead of Rising Costs

Don't wait for your next project bid to find out what steel costs. Get a quote today and lock in current pricing before the next round of increases.

Request a quote online, call us at (503) 588-1311, or stop by our warehouse for same-day pickup.

Ram Steelco is a locally owned steel and metals supplier serving Oregon since 1938. We carry a full inventory of carbon steel, stainless steel, aluminum, and galvanized products with in-house processing services and next-day delivery.