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US Aims to Block Surge of Chinese Metal Imports
AISI, Aluminum Industry Praise Aggressive Trade Action
Former President Donald Trump has announced a sharp increase in tariffs on imported steel and aluminum, raising them from 25% to 50% in a move aimed at protecting domestic metal producers from surging global overcapacity—particularly from China.
Speaking at a rally in West Mifflin, Pennsylvania, Trump told United Steelworkers that the decision stemmed from industry feedback urging stronger trade protection. He said, “At 25 percent they can sort of get over that fence. At 50 percent, nobody’s getting over that fence.”
The announcement immediately received praise from industry associations:
- The American Iron and Steel Institute (AISI) said the move would “help prevent new surges in imports that would injure American steel producers and their workers.”
- The American Primary Aluminum Association (APAA) described it as a "historic" move, calling it essential to reviving domestic aluminum capacity.
Context:
- Chinese steel exports surged to 118 million mt in 2024, surpassing total North American consumption.
- The Chinese construction sector’s slump has pushed excess steel into global markets.
- US metal producers argue that state-subsidized production abroad distorts market competition, threatening American jobs and capacity.
ScrapInsight Analysis:
This dramatic tariff escalation is a clear signal of escalating trade protectionism in the metals sector. While it may bolster domestic production and pricing in the short term, global responses and retaliatory trade measures could follow. Still, the move will be welcomed by scrap recyclers, mini-mills, and integrated producers, who face mounting pressure from low-cost imports.
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