The Chinese steel industry, which is already facing weak domestic demand and overcapacity, which lead the country to focus on exports, may be affected if Donald Trump, who has been re-elected as US president, implements 60 percent tariffs on Chinese manufacturing goods made with steel, according to a report by Reuters. The tariffs, which may be implemented on the products which are categorized as indirect steel exports, would put 12.78 million mt of indirect steel exports at risk, negatively affecting Chinese steel exporters, who already face tariffs on steel.
US senators stated that China is avoiding US tariffs by moving its production to Mexico, which benefits from the free trade agreement between the United States, Mexico and Canada (USMCA), as SteelOrbis previously reported.
In October, China’s direct steel exports hit a nine-year high at 11.18 million mt, while only less than one percent of the country’s steel exports are shipped to the US.
In May this year, US president Joe Biden had said that he would increase the existing 0-7.5 percent import duties on Chinese steel products under the Section 301 tariffs to 25 percent this year, as SteelOrbis previously reported.