Both the Trump and Biden administrations have accused China of dumping cheap steel on the global market, harming U.S. producers.
News Analysis
WASHINGTON—When President Donald Trump’s steel and aluminum tariffs on all countries take effect on March 12, much of the conversation will center around their effectiveness in tackling China’s aggressive trade practices.
These tariffs are specifically aimed at Beijing’s persistent overproduction of cheap metals, which has long undermined companies around the world, including in the United States, and caused trade tensions.
On Feb. 10, Trump reintroduced a 25 percent tariff on steel imports and increased tariffs on aluminum imports from 10 percent to 25 percent. On March 11, the White House confirmed that these tariffs will apply to all countries, “with no exceptions or exemptions.”
For decades, China has been flooding the global market with cheap, heavily subsidized exports, putting producers in the United States and other countries at a significant disadvantage.
China is by far the world’s largest producer of steel, with nearly one billion metric tons of crude steel produced in 2024. Over the past two decades, China’s share of the global steel production has seen a dramatic rise, jumping from 23 percent to 53 percent. This shift has led to a pricing imbalance, with China’s steel dominating the market and pushing prices lower across the globe.
In 2024, China exceeded one billion metric tons for the fifth year in a row, which is approximately 10 times the annual steel demand in the United States, according to the American Iron and Steel Institute (AISI).
China also plays a leading role in aluminum production. Over the last 20 years, China’s share of global aluminum production has skyrocketed from just 8 percent to 58 percent.
China’s growth in both steel and aluminum sector has been fueled by substantial state subsidies. The country produces far more than the global market demands, resulting in a massive overcapacity problem. This has allowed China to flood the market with cheap steel and aluminum, hurting American producers.
By Emel Akan and Andrew Moran
