How Can "Stainless Steel" Rust?

Although stainless steel is much more resistant to corrosion than ordinary carbon or alloy steels, in some circumstances it can corrode. It is "stainless" not "stain-impossible."
Type 304ss is more susceptible to forming rust than Type 316ss. This is due to the presence of higher levels of both nickel and molybdenum. Stamping, forming and welding can disrupt the surface microstructure of stainless steel and this is more so the case for Type 304ss.
Salt water, salt in the air and chemicals can attack Type 304ss causing pitting to occur. The additional nickel and molybdenum in Type 316ss make it less likely for corrosion to occur when exposed to these same elements.
Galvanic corrosion can occur when stainless comes into contact with dissimilar metals when an electrolyte, water or other solution is present.