(Yicai) May 15 -- Though the impact of newly increased US tariffs on imported China-made steel will be limited, as shipments to the country have been falling in recent years, the move will have a negative affect on exports of products that use Chinese steel, according to industry insiders. 

China exported only 815,000 tons of crude steel to the United States last year, Ge Xin, deputy head of Langge Steel Information Research Center, told Yicai, adding that the figure accounted for less than 1 percent of the total shipped from China.

The US government’s new levies will have a greater bearing on indirect imports of steel used in Chinese electric vehicles and cranes, two industries that use large quantities of the alloy, Ge said.

US President Joe Biden yesterday announced steep tariff hikes on China-made semiconductors, batteries, solar cells, and steel. Rates on certain steel and aluminum products will more than triple to 25 percent this year while EV tariffs will be raised to 100 percent from 25 percent.

China’s commerce ministry said it opposes the increases and will take steps to safeguard the country’s rights and interests.

The US levies on finished products will hit raw material suppliers, according to Wu Wenzhang, chairman of data provider SteelHome Information Technology. EVs and cranes contain cold and hot rolled steel, as well as steel bars and structural steel, he said.

Based on demand in the first quarter, China-made mechanical and electrical products destined for foreign markets are expected to use over 120 million tons of steel this year, Ge predicted, adding that import duties on these products would affect the balance of supply and demand in the country.

Editor: Emmi Laine