The U.
S.-China trade talks joined ongoing negotiations this month on the United States-Mexico-Canada (USMCA) agreement to influence sentiment in various steel markets, which were assessed by MEPs.
Optimism about the talks in Beijing with the participation of US President Donald Trump and Chinese President Xi Jinping appeared after a sharp increase in steel purchases after the celebration of Labor Day in China (from 1 to 5 May). Combined with the effects of rising costs for steel companies, largely related to the ongoing conflict in the Middle East, this has led to higher steel prices in China, according to estimates by MEPs. After a six-month period of relative stability, the prices of hot rolled products in the country increased by 6.4%, while the prices of rebar increased by 4.7%.
- This article was first published in the May issue of the European Parliament's International Steel Review. The monthly report provides subscribers with information on steel prices, indexes, market commentary, and forecasts from key global steel markets in North America, Europe, and Asia. Contact the members of the European Parliament for detailed information on how to sign up.
The outcome of the US-China talks is unclear. However, the 50% tariffs on steel imports imposed under Section 232 will not be affected by any trade agreements. It is also unlikely that the US will make any concessions regarding its 100% tariffs on Chinese electric vehicles, which are a key driver of China's steel consumption.
In addition, the U.
S. Trade Representative's Section 301 investigations aimed at combating foreign policies that burden or restrict U.
S. trade are expected to result in further tariffs. These investigations focus on imported goods, including steel, from 60 countries.
The Article 301 tariffs can effectively replace the "reciprocal" US tariffs imposed under the International Emergency Economic Powers Act (IEEPA), which were declared illegal in early March. General tariffs of 10% were applied. To import into the United States in accordance with Section 122 of the legislation after this decision of the Supreme Court. However, their validity period is limited to 150 days and ends on July 24.
One of the results of the recent trade negotiations with China, announced by President Trump after his visit to Beijing, was an agreement for China to purchase 200 Boeing aircraft. This is an additional boost for the US manufacturing sector, which is already benefiting from favorable forecasts. In March, the index of business activity in the manufacturing sector
