As the tariff storm rages, what challenges will the steel market face?

In recent days, the United States has wielded the "tariff stick" wantonly, causing violent fluctuations around the world and casting a shadow on the prospects for the world economic recovery.

In the short term, the prices of goods exported to the United States by various countries will rise, the domestic consumption costs in the United States will also increase accordingly, and the stability of the global supply chain will be seriously disturbed.
For Steel Companies, they should do their own work well, actively adjust their market strategies, open up more international markets, optimize their export structure, strengthen product innovation, technological innovation and management innovation, and continue to work hard to enhance the international influence and competitiveness of enterprises.
In short, economic globalization has become an unstoppable historical trend.
The US "tariff stick" seems tough, but it actually goes against the trend of globalization.

For my country's steel industry, the impact of the US's "reciprocal tariffs" is mainly in three aspects.
First, my country's direct steel exports are blocked.
The United States is the world's major steel importer. In 2024, the import volume of steel (billets) reached 31.82 million tons. The main import sources (regions) include Canada, Brazil, the European Union, South Korea, Mexico, etc., and only 890,000 tons of steel are directly imported from my country, accounting for only 0.8% of my country's steel exports and 2.8% of the United States' steel imports6.
Although the US "reciprocal tariff" policy excludes steel, aluminum, gold and copper, the United States has previously imposed high tariffs on steel imported from my country.

In addition, Vietnam, South Korea and other countries have taken anti-dumping measures against my country's steel exports, which will have a greater impact on my country's direct steel exports.
Second, my country's indirect steel exports are under pressure.
Among my country's foreign trade exports, nearly 60% are electromechanical products.
According to estimates by Steel Home, in 2024, my country will indirectly export about 150 million tons of steel.
In 2024, my country's exports to the United States will reach 3.73 trillion yuan, accounting for 14.7% of my country's total exports.
Among them, more than 50% of export commodities are related to steel, especially mechanical and electronic products, with an export value of about 1.55 trillion yuan, accounting for 41.5%.
The imposition of "reciprocal tariffs" by the United States may lead other countries to turn to conservatism, which will have a greater impact on net exporters of goods.
Third, the contradiction between domestic supply and demand may intensify.
Oversupply is one of the main contradictions faced by my country's steel industry in recent years.
According to a survey by Steel Home, the current production capacity of major steel varieties in my country is basically greater than the output, and the reduction of direct or indirect exports will lead to increased pressure on the fundamentals of the domestiC Steel market.
In recent years, my country's steel consumption has shown obvious structural changes, with a continuous decline in construction steel consumption and an increase in demand for industrial materials.
The product structure adjustment direction of my country's steel enterprises is mainly manifested in "general to superior" and "long to plate", especially the continuous increase in plate production capacity, but this year may see a situation where both construction steel and industrial materials demand decline.
Overall, the US's imposition of "reciprocal tariffs" is a systemic risk.
In the short term, the increased risk aversion in the market will lead to the risk of falling capital markets and commodity prices, and the spot price of steel will inevitably be affected, but it is expected that the duration will not be long.
In the medium and long term, the global "tariff war" will lead to greater contradictions between supply and demand in my country's steel industry, and steel companies should be prepared to meet greater challenges.