Trump’s new tariffs cast shadow over Chinese stainless steel exports

• All transshipped goods to US to face additional 40% tariff
• Rising Chinese exports to Southeast Asia under question

Mysteel: The United States has ramped up its trade offensive recently by modifying “reciprocal” tariffs on dozens of its trading partners. Starting 7 August, all goods that the US considers to have been transshipped to avoid applicable duties are subject to an additional 40% tariff, according to the White House.

Market analysts warn that the newly imposed duties on transshipped goods could deliver a double whammy to Chinese stainless steel exporters, who are already grappling with elevated base tariffs and softening global demand.

In particular, the measure is expected to dent the country’s exports to Southeast Asia, according to an industry insider.

“Exporters had been rushing to ship cargoes to the region, as they sought to circumvent both anticipated and already-high trade barriers,” he explained.

Consequently, China witnessed a surge in exports to Southeast Asia in July, with shipments rising by 16,300 tonnes (t) or 14.8% m-o-m to some 126,000 t. Notably, this increase accounted for 62.1% of the country’s total export growth that month. Compared to the same month last year, the volume also climbed by 19,800 t or 18.5%, according to the General Administration of Customs (GACC).

In the first seven months of the year, total exports to the region soared by 180,700 t or 28.4% y-o-y to around 817,800 t. This far exceeded the 141,000-t or 5.1% y-o-y growth in the country’s total stainless exports. Over the period, China’s cumulative export volume of stainless steel had totalled some 2.92 million tonnes (mnt), the data suggested.

Additionally, the Trump administration also expanded its 50% steel and aluminium import tariffs to 407 new product categories, effective 18 August, according to the US Department of Commerce.

Nevertheless, the direct impact on both stainless producers and appliance manufacturers in China is expected to be minimal, as the tariff list spares stainless steel products and most stainless-consuming household appliances, Mysteel Global noted.

The list now covers products such as fire extinguishers, machinery, construction materials, and speciality chemicals that either contain, or are contained in, aluminium or steel.

Nonetheless, the already-high rates imposed previously by the US had still taken a toll on China’s exports of stainless steel-containing kitchenware, such as insulated bottles.

Manufacturers of vacuum flasks for beverages and based in East China’s Yongkang city — a major global production hub for these flasks — took a hit during April-May, as the hefty tariff rates had rendered shipments to the US economically unviable, forcing many American buyers to refrain from placing orders. This reduced their export orders for these popular austenitic stainless consumer products by over 50%.

In January-July 2025, China’s exports of vacuum flasks to the US saw a significant y-o-y decline of 38 million units or 15.7% to only 200 million units, the GACC data suggest.

Note: This article has been published in accordance with a content exchange agreement between Mysteel and BigMint.