The imposition of new tariffs on this metal, announced by President Trump's administration, places it at the center of the US 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 US, further complicate the situation of its strategic market for a sector that was already destabilized by China's overproduction and the difficulties faced by European producers. During his first term (2017-2021), the US president already imposed tariffs on these materials to protect domestic industry, which he claimed was facing 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 manufacturer, 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 supplied by Canada, with 5.95 million tons imported in 2024, according to the US 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 does Trump accuse China of unfair competition?
Global steel prices fell significantly last year due to overproduction.
According to the OECD, the global steel surplus ranges between 500 and 560 million tons. “Most of it comes from China, which is flooding global markets,” a European steel manufacturer 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,” the source added.
The steel economy, which has been cyclical for 50 years, now faces a ‘structural’ problem of overproduction, experts say.
China drastically reduced its consumption, partly due to the halting 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 US players in a difficult position.
US Steel, which is going through a difficult period, was the target of an attempted takeover by Nippon Steel, blocked first by Joe Biden and then by Donald Trump.
The German company ThyssenKrupp, for its part, announced the elimination of 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 at the center of a new trade war?
Steel, which was at the heart of the industrial revolution that began in Europe in the 19th century, remains the basis of many other traditional industries.
In 2023, 52% of steel produced was still used in construction, while the automotive industry accounted for 12%.
The arms and railway industries are also among the major customers for steel, which is equally essential for the energy transition (wind turbines) and digital transition (data centers).
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 begun a transition, and massive investments are planned in Europe for decarbonization. However, these are currently on hold due to the complicated current context.
AFP / Edited by Vladimir Núñez, Emol