China’s Steel Surplus: How Overproduction Hurts US Manufacturing
China’s Steel Surplus: How Overproduction Hurts US Manufacturing
China makes far more steel than it uses at home. The excess heads overseas, often at prices that undercut American producers. This overproduction ties into a broader trade imbalance that’s growing despite US tariffs.
Record Trade Surplus Shows the Problem
Customs data shows China’s trade surplus topped $1 trillion for the first time this year, NPR, Bloomberg, NYT, and Washington Post reported. Exports to the US dropped nearly 29% in November alone.
President Trump’s tariffs drove that fall. They hit 145% at one point this spring, then eased to 47.5%. Imports into China barely budged, up just slightly.
Tariffs Slow Exports Here, But Not Everywhere
China found other buyers. Overall exports climbed 5.9% from last November, with sales jumping to Europe, Africa, Latin America, and the rest of Asia.
- US-bound exports: down 29%
- Total exports: up 5.9%
- Trade surplus: $1 trillion, a record
Why Steel Fits This Pattern
Sectors like steel suffer from this overcapacity. Factories run hot, producing surpluses that get dumped abroad. Bloomberg notes World Steel Association calls it hard to fix. NPR points out the challenges this creates for US manufacturing—tariffs protect some ground, but rerouted exports keep pressure on. Mexico plans to raise tariffs on Chinese imports, which could aid US steelmakers.
Cheap steel imports have closed US mills and cost jobs before. The trillion-dollar surplus signals more of the same unless trade flows shift.
Sebastyen
Sebastyen Wolf is our Editor-in-Chief. He is an analyst and entrepreneur with experience working alongside early-stage founders, launching online ventures, and studying the data patterns that shape successful companies. A fan of Shark Tank since Season 1, he now focuses on translating the show’s most valuable insights into clear, practical takeaways for readers.
