Kevin Dempsey, the president and CEO of the American Iron and Steel Institute (AISI), has applauded the US-China deal which will temporarily reduce tariffs, eliminate retaliation, and retain a US baseline tariff on China while continuing future trade discussions.
According to the agreement, the US and China have agreed to reduce their tariffs from 145 percent to 30 percent and from 125 percent to 10 percent, respectively, for an initial 90 days beginning on May 14, as SteelOrbis previously reported.
Highlighting the particular significance of the agreement to the US steel industry, Mr. Dempsey said that US steel producers are too familiar with the detrimental effects that unfair trade practices by China and other countries have had on domestic industries and their workers, and they are pleased that the Section 232 steel tariffs and the Section 301 tariffs on steel from China to address these unfair trade practices will remain in place.
According to the statement, despite declining local steel demand, China’s steel production remains at record high levels. Chinese steel exports have more than doubled since 2020, rising to 118 million mt in 2024, more than total North American steel production. In addition, the Chinese government is encouraging cross-border investments through its Belt and Road Initiative, resulting in additional export-oriented steelmaking capacity outside of China - particularly in Southeast Asian countries like Indonesia and Vietnam.