Is The World Encircling China's Steel Industry? A Comprehensive Look At The Three Major Barriers: Anti-Dumping, Anti-Subsidy, And Carbon Tariffs.

Currently, China's steel production capacity remains stable at 1 billion tons, and steel exports are projected to reach 119 million tons by 2025. Overseas markets are a crucial support for the industry's stable operation. If exports are hindered, domestic prices for products such as rebar and hot-rolled coils could easily fall below 3,000 yuan/ton, plunging steel mills into difficulties. At present, China's steel exports face increasingly stringent tariff barriers, and the global encirclement is becoming increasingly apparent.

Four Major Trade Barriers: Understanding the Core Differences

• Basic Tariff

Simply put, this is the import "entry fee" (import tariff). Importing countries levy regular taxes on imported steel, with the core purpose of raising the price of foreign products and protecting the interests of domestic steel companies.

• Anti-dumping Duties

Targeting "dumping" practices, importing countries believe that Chinese steel is deliberately sold at low prices to seize local markets and impact domestic industries, so they impose punitive tariffs to curb low-price competition.

• Countervailing Duties

Regarding the "policy support" controversy, importing countries believe that the Chinese government reduces steel mill costs through subsidies and tax rebates, constituting unfair competition, and therefore impose taxes to offset the subsidy advantage.

• EU CBAM Carbon Tariff

As a new type of green barrier, the EU requires imported high-carbon steel to pay carbon emission costs to offset the carbon cost differences between domestic and foreign steel mills. China's blast furnace steelmaking carbon emissions per ton of steel are far higher than those of EU electric arc furnace steelmaking. Exporting steel to the EU incurs high carbon costs, reaching nearly 14 million RMB per 10,000 tons, directly squeezing profits and weakening competitiveness.

Overview of Key Barriers from 18 Countries, Global Restrictions Intensifying

Over 50 countries and regions worldwide have imposed restrictions on Chinese steel, encompassing tariffs, anti-dumping and countervailing duties, carbon taxes, and quotas. Below are the core measures from 18 major countries:

• United States:Multiple layers of tariffs, including a base tax + Section 301/232 tariffs + anti-dumping and countervailing duties + additional surcharges, resulting in a persistently high overall tax rate.

• EU: A triple barrier of quotas + carbon tariffs + anti-dumping measures; a nearly 47% reduction in steel import quotas by 2026; an increase in out-of-quota tariffs to 50%; and the formal implementation of the CBAM carbon tariff.

• Canada: A 25% anti-circumvention tax; a 50% reduction in steel quotas from non-free trade countries; and a 50% tariff on excess quotas.

• Mexico:A generalized additional tariff of 3... A 5% tariff, with automotive steel reaching 50%, coupled with anti-dumping duties on multiple products.

• India: Triple protection of anti-dumping duties, safeguard duties, and minimum price limits; safeguard duties on flat steel are decreasing annually, with a minimum import price set.

• Turkey, Thailand, and Indonesia:Imposing anti-dumping duties ranging from 10% to 50% on cold-rolled, stainless steel, and hot-rolled products.

• Australia: Fully implementing anti-dumping and countervailing measures; anti-dumping duty on rebar at 23.7%; the UAE and Iran raising basic import tariffs; Japan and South Korea also initiating anti-dumping investigations.

Barrier Impacts and Breakthrough Directions

The rise of global trade protectionism has directly put pressure on China's steel export volume and sharply reduced its cost advantage. Even when expanding markets through transshipment through third countries, it faces stringent anti-circumvention investigations.

Faced with this multi-layered encirclement, only through concerted efforts from the government, industry, and enterprises—including technological upgrades to reduce carbon emissions and increase efficiency, cultivating emerging and diversified markets, expanding overseas production capacity, and strengthening compliance and litigation response—can these barriers be overcome and the core competitiveness of the steel industry enhanced.