The impact of Trump on China’s steel industry during his tenure is mainly reflected in the following aspects:

1. Raising tariffs: In 2018, the Trump administration imposed steep tariffs on imported steel and aluminum on the grounds of “national security” under Section 232 of the Trade Act of 1974. Specifically, the United States imposes a 25 percent tariff on imported steel and a 10 percent tariff on aluminum. While the tariffs apply to a number of countries, they are particularly targeted at China. This has led to a significant increase in the cost of Chinese steel entering the US market, directly affecting China’s steel exports to the US.

2. Compression of export space: With the increase of tariffs, the price advantage of Chinese steel has been weakened, and the total amount of steel exported to the United States has gradually decreased. Domestic demand for Chinese steel has also fallen in the United States, prompting Chinese companies to adjust the markets and methods of exporting their products and increase exports to other markets, such as Southeast Asia, the Middle East and Latin America.

3. Increased competition in the global steel market: In order to absorb excess capacity, Chinese steel companies have to find a way out in other markets, leading to increased competition in the global market. Especially in the EU and Southeast Asian markets, the increase in Chinese steel exports has also triggered anti-dumping measures in other countries, bringing more challenges to Chinese steel companies.

4. Promote industrial upgrading: Trump’s tariff policy and the United States’ restrictions on Chinese steel imports have forced China’s steel industry to transform and upgrade, improve the added value and technical content of products, and reduce its dependence on low-value-added steel exports. In response to the uncertainty in the international market, some large steel companies in China have accelerated the process of improving environmental protection technology, automated production and high-quality steel research and development.

5. Supply chain adjustment: The global steel supply chain has been adjusted due to the tariff issue. Some US companies have gradually reduced the purchase of steel from China and switched to imports from countries exempt from tariff restrictions such as Canada and Mexico, leading to a further reduction in the volume of Sino-US steel trade, and also making Chinese steel exporters need to find more non-US markets.

Overall, Trump’s tariff policy has had a great impact on China’s steel exports in the short term, but it has also indirectly promoted the structural adjustment and technological upgrading of China’s steel industry.