The American Iron and Steel Institute (AISI) has called for stronger trade action to address global steel overcapacity, warning that the problem continues to threaten the viability of domestic industries and U.S. manufacturing jobs.
In its report to the Office of the US Trade Representative as part of its Section 301 investigations, AISI highlighted that global excess steel capacity has reached approximately 640 million tons in 2025 and is expected to continue to grow in the coming years. Despite weakening global demand, manufacturing capacity continues to expand, driven largely by government subsidies and non-market policies.
Rising exports and trade distortions add pressure
According to AISI, excess capacity is driving up exports from overproducing countries, displacing domestic production in other markets, including the United States.
The association noted that Countries facing import pressure often respond by increasing their own exports, creating a cycle that further destabilizes global markets.
China remains a central problem of excess capacity
AISI highlights that China remains the largest source of global excess capacity, accounting for a significant share of excess production and exports.
Chinese steel exports reached about 131 million tons in 2025, while its share of global excess capacity has risen to more than 50 percent, fueled by extensive government subsidies and overseas investment.
Bypassing and indirect trade are increasingly important
The report also highlights the rise in the use of bypass strategies, including:
- Routing exports through third countries
- Slight modification of products to avoid tariffs
- Expansion of indirect steel trade into steel-intensive goods.
Indirect steel trade has grown significantly, reaching volumes equivalent to 93 percent of direct steel exports in 2024
Call for a Comprehensive Policy Response
AISI called on US authorities to take a multifaceted approach, including stronger enforcement of existing tariffs and additional measures in Section 301 investigations. The association emphasized,
