%Steel producers in China are bracing for potentially higher %Tariffs from America depending on who wins the U.S. presidential election.
Steel exports from China are likely to see higher tariffs if Donald Trump is victorious in the U.S. election being held Nov. 5.
Trump has been threatening to raise tariffs on a range of Chinese products, including steel, and has largely been using China as a scapegoat for problems in the U.S. economy.
China already faces a 25% tariff on its steel exports to the U.S. If Kamala Harris wins the presidential election, producers in China expect more of the same.
However, tariffs could rise sharply under a new Trump administration that is expected to be protectionist on trade.
Already, the U.S. imposes heavy tariffs to protect its critical minerals sector, including a 100% tariff on all Chinese electric vehicles sold in America.
Until now, China’s exports have remained resilient despite deflation and weak consumer spending within the domestic Chinese economy.
But some analysts say China could find itself in an escalating trade war with the U.S. if Donald Trump retakes the White House.
Any rise in U.S. tariffs could hurt China’s already weakened economy, say analysts, further reducing domestic steel demand and leading to an oversupply of the building material.
China’s domestic steel consumption declined to 933 million metric tons in 2023 from 1.048 billion metric tons in 2020 and might fall below 900 million metric tones this year, according to the China Iron and Steel Association.
China’s property market is struggling with a debt crisis that has hurt the construction industry in the country of 1.4 billion people and dented demand for steel products.