US tariff war hits China's stainless finished product exports

The United States has long imposed steep anti-dumping (63.86%-76.64%) and countervailing duties (75.6% or 190.71%) on stainless steel coil imports from China. As a result, cold-rolled and hot-rolled stainless coil exports to the U.S. have remained minimal at less than 2% of China's total stainless exports.

"The direct impact of Trump's tariffs on stainless coil exports is limited," a market watcher told Mysteel Global. "But the pressure on indirect exports – such as white goods, industrial stainless components, and other stainless consumer products – is mounting, especially for suppliers heavily reliant on the U.S. market," he added.

In 2024, around 20% of China's total stainless tableware and kitchenware exports were shipped to the U.S., according to data from the General Administration of Customs (GACC), underscoring the country's importance as a key destination for China's stainless finished goods.

The several White House announcements released show that as of April 25, the U.S. now levies a 45% tariff on most China-origin finished stainless steel goods, including tableware and kitchenware. Even steeper tariffs of up to 70% have been placed on products such as stainless steel machine bands, sinks, flanges, and threaded fittings. All these duties took effect on March 4.

The effects are already visible. In March, just 17.5% of China's stainless tableware exports were sent to the U.S., down from 22.8% a year earlier, Mysteel Global calculated based on GACC data.

The pressure intensified on April 9 when the U.S. imposed a new 145% tariff on a wide range of Chinese goods, alongside additional duties targeting other major trade partners.

Although steel and aluminum imports (classified under HS Codes 72 and 73) are exempt from these 'reciprocal tariffs,' downstream stainless products that fall outside those categories are not protected - prompting growing concern among Chinese exporters.

One such example is the vacuum flask, a popular austenitic stainless steel consumer product. In February, amid rising trade tensions, Chinese flask makers rushed to export. GACC data shows that nearly 25 million vacuum flasks (excluding glass bile) were shipped abroad that month, with the U.S. alone accounting for 12 million units - or 49.5% of total monthly exports - far above the 2024 average of 37.3%.

Yongkang, a city in East China's Zhejiang province known as China's top vacuum flask manufacturing base, has been particularly affected. According to Mysteel Global, many local exporters there have reported a steep drop in orders from the U.S., with some American clients suspending new purchases altogether due to escalating trade uncertainties.

Local media such as Jinhua Daily report that Yongkang hosts over 300 vacuum flask manufacturers and more than 200 supporting enterprises. The city produces about 600 million vacuum flasks annually, representing more than 80% of China's total output and over two-thirds of the country's flask exports.

As pressure on downstream stainless products builds, the ripple effect is beginning to reach upstream steelmakers. "Many fabricators are delaying their stainless steel restocking plans until overseas orders normalize," a stainless steel trader told Mysteel Global.

Written by Adele Pan, panqinjie@mysteel.com        

Edited by Russ McCulloch, russ.mcculloch@mysteel.com