The imposition of new tariffs on this metal, announced by President Trump's administration, makes it a central figure in the North American country's trade strategy.
The new trade war promised by Donald Trump since his return to the White House entered a new phase on Monday, with the expected introduction of 25% tariffs on steel imported into the United States. The new tariffs on this metal, and on aluminum, announced by the North American country, complicate a little more the situation of its strategic market for a sector that was already destabilized by excess production in China and the difficulties of European producers. During his first term (2017-2021), the US president already imposed tariffs on these materials to protect the domestic industry, which was facing, according to him, unfair competition.
Who exports steel to the United States?
Global crude steel production reached 1.89 billion tons in 2023, of which more than half (1.02 billion tons) was produced by China, the world's leading producer, according to the latest figures available from World Steel.
The United States, far behind with 82 million tons produced, imported 26.4 million tons of this metal in 2023, making it the world's second largest importer, behind the European Union.
It is mainly sourced from Canada, with 5.95 million tons imported in 2024, according to the U.S. Trade Administration.
It is followed by Brazil, the EU and Mexico with 4.08, 3.89 and 3.19 million tons respectively, ahead of other countries such as South Korea, Vietnam, Japan, Taiwan and China.
Why is Trump accusing China of unfair competition?
World steel prices fell considerably in the last year due to overproduction.
According to the OECD, the world steel surplus ranges between 500 and 560 million tons. "Most of it comes from China, which is flooding world markets," a European steelmaker told AFP on condition of anonymity.
"Production capacities in the United States and Europe have historically been balanced and adapted to domestic demand, but in Southeast Asia they far exceed demand," this source added.
The steel economy, cyclical for 50 years, is now facing a "structural" problem of overproduction, experts say.
China drastically reduced its consumption, due in part to the stoppage of its huge construction projects.
In addition, the Asian giant is suspected of subsidizing its production more or less directly, which reduces prices, putting traditional European and U.S. players under pressure.
US Steel, which is going through a difficult time, was the subject of a takeover attempt by Nippon Steel, blocked by Joe Biden and then by Donald Trump.
The German company ThyssenKrupp announced that it is cutting thousands of jobs.
To illustrate the intensity of the current trade war, the European businessman interviewed by AFP pointed out that "China exported between 110 and 120 million tons last year, which is practically equivalent to European consumption," which stands at 126 million tons per year.
Why is steel the protagonist of a new trade war?
Steel, which was at the heart of the industrial revolution that began in Europe in the 19th century, is still the basis for many other sectors of traditional industry.
In 2023, 52% of the steel produced was still destined for construction, while the automotive industry absorbed 12%.
The arms and rail industries are also among the major customers of steel, which is also essential for the energy (wind turbines) and digital (data centers) transitions.
However, its manufacturing process, which uses coal to remove oxygen from iron ore, makes it the industrial sector that emits the most greenhouse gases.
The sector has launched a transition and massive investments for decarbonization are planned in Europe. However, they are at a standstill due to the current complicated context.
AFP / Edited by Vladimir Núñez, Emol