A recent Reuters report highlights that the US's new 25 percent tariff on steel imports is likely to disrupt the supply chain transporting steel from China to the US via third countries. This move is expected to heighten global competition and negatively impact Chinese steel exports, valued at about $7 billion. Previous tariffs in 2016 and 2018 made Chinese steel less affordable in the US, leading third countries to buy it at a reduced price, process it, and then resell it to the US market.
With the new tariff, China's steel exports will face additional pressure, potentially lowering the profitability of Chinese companies already grappling with a challenging market. A source told Reuters that export orders for shipments in March and April have fallen by 20-30 percent compared to the previous year. Furthermore, the competition in regions not subject to major trade restrictions on Chinese steel, such as the Middle East, is expected to intensify as more Chinese steel enters those markets.
Read more: Steel output and sales in Vietnam fall in January
Vietnam Steel by Hoa Sen Group
