US tariffs? China’s steel industry has far bigger problems than that

Chinese steelmakers are facing a major demand challenge – but it has little to do with the new 25 per cent tariffs announced by US President Donald Trump.

In reality, Washington’s latest trade move will barely affect China’s steel industry, as shipments to the US account for only a small fraction of its total exports, analysts said.

However, Chinese steel producers are becoming more dependent on exports to other markets due to sluggish domestic demand and persistent industry overcapacity.

The US gets most of its imported steel from Canada, Brazil, Mexico and South Korea. China, despite being the world’s largest steel producer and exporter, accounted for less than 2 per cent of US steel imports in 2024, according to the American Iron and Steel Institute.

The US tariffs will have little direct impact on China, though some second-order effects may occur, said Xu Tianchen, a senior China economist with the Economist Intelligence Unit.