AISI Applauds Retention of Steel Tariffs in U.S.-China Trade Agreement

The American Iron and Steel Institute (AISI) has expressed its support for the U.S.-China trade agreement. This agreement temporarily reduces some tariffs but keeps steel tariffs in place. Kevin Dempsey, AISI’s president and CEO, believes this decision benefits U.S. steel producers by reducing trade retaliation between the two countries.

The Importance of Steel Tariffs for U.S. Industry

While some tariffs between the U.S. and China have been reduced, steel tariffs remain intact. Dempsey noted that U.S. steel producers continue to face challenges due to unfair trade practices, especially from China. China’s steel production is at record highs despite declining domestic demand. This imbalance has led to a surge in Chinese steel exports, which have more than doubled since 2020.

In 2024, China exported 118 million metric tons of steel, surpassing North America’s total steel production. Meanwhile, steel imports to China have dropped by nearly 80%. Dempsey also pointed out that Chinese steel producers are expanding their capacity in Southeast Asia, particularly in countries like Indonesia and Vietnam.

AISI’s Support for Retained Tariffs

AISI fully supports the retention of Section 232 and Section 301 tariffs on Chinese steel. Dempsey emphasized that these tariffs protect U.S. producers from unfairly priced imports. Steel production is vital for the U.S. economy and national security, and these tariffs are key to maintaining a strong steel industry.

The retention of tariffs shows the U.S. government’s commitment to addressing unfair trade practices. It also highlights the need for continued protective measures against global steel overcapacity, especially from China.