The American Iron and Steel Institute (AISI) has praised a recent announcement by US President Joe Biden, who has proposed tripling the existing Section 301 tariff on Chinese steel.
The AISI is concerned about the significant increase in Chinese steel exports to global markets and welcomes the President's actions. According to the OECD, Chinese steel exports grew from 68 million metric tons in 2022 to 95 million metric tons in 2023, a 40% increase in just one year. While there has not been a similar surge in direct Chinese steel shipments to the United States, Chinese steel exports to third-country markets are often further processed into other steel or downstream manufactured products and then exported to the US market.
The AISI states that China disrupts world markets by subsidizing the production of steel and other products and "by dumping those products in the US and other markets".
The Chinese government is also expanding its unfair trade practices beyond its borders by subsidizing its steel producers in building additional export-oriented steelmaking capacity outside of China, particularly in Southeast Asia through the Belt and Road Initiative. The AISI appreciates the Biden administration's efforts to push back on Chinese and other foreign unfair trade practices that hurt American steel producers and their workers.
