Analysis Of The Impact Of US Tariffs On China's Steel Industry

The US administration has recently adjusted its trade policy, with major changes including the end of the "de minimis" exemption for goods from China, Mexico, and Canada - goods from these three countries, regardless of their value, were subject to tariffs. However, the low-value exemption policy still applies to other countries but may be subject to further adjustments in the future

(note: the termination of the low-value exemption policy for imports from Mexico and Canada is suspended until March 2025).

Increase tariffs on imports from China, Mexico, and Canada - Chinese goods are now subject to a 10 percent tariff, while Canadian and Mexican goods are subject to a 25 percent tariff (and Canadian energy products are subject to 10 percent) (with Canada and Mexico's tariffs suspended until March 2025). Enhanced Customs Oversight - To ensure that imports conform with the new standards, US Customs and Border Protection (CBP) will strengthen oversight of import paperwork, tariff classifications, and trade channels. On the 10th, President Trump imposed a new 25% tariff on all steel and aluminum imports to the United States but did not specify when the tariffs would take effect.

The new tariffs will be stacked on top of existing metal tariffs, indicating another "major escalation" in Trump's trade policy reform. However, China's direct steel shipments to the United States account for a small share of total steel exports, and they have decreased year after year, falling to 0.8% by the end of 2024.

In 2024, China's total steel exports increased by more than 20% year-on-year, from a clear point of view, the impact of tariffs on direct exports is relatively limited. However, China has accelerated the development of other international markets, and some products are re-exported to the United States through transit in other countries or regions, and this non-discriminatory levy may affect transit trade in the future.