How Do Tariff Wars Reshape The Trade Of PPGI/GI Steel Across Regions？

• Europe & North America

EU: To protect its industry, the EU introduced a carbon intensity label for steel products, favoring low-emission manufacturers. PPGI/GI imports exceeding quotas now face 25% tariffs, incentivizing local green steel production.

U.S.: The 25% steel tariff has reduced imports from Asia, but domestic PPGI/GI prices rose by 12% in Q1 2025. U.S. buyers increasingly source from Canada and Mexico to avoid duties

• Southeast Asia

Malaysia and Vietnam have become transit hubs for Chinese PPGI/GI rerouted to the U.S., exploiting tariff loopholes through "origin washing"7. However, stricter customs checks in these countries (e.g., Malaysia's extended steel investment freeze) may disrupt this practice.

Local demand: Southeast Asia's construction boom offsets export challenges, with PPGI/GI consumption growing at 6% CAGR (2025–2031)

• Middle East & Africa

Middle East: Reliant on imports due to limited local capacity, the region faces higher costs as EU and U.S. tariffs redirect Chinese exports. UAE and Saudi Arabia now prioritize partnerships with Turkish and Indian suppliers.

South Africa: High U.S. tariffs have reduced competition from Chinese PPGI/GI, creating opportunities for local producers. Imports from China fell by 18% in early 2025

• East Asia

Japan: U.S. tariffs could cut Japan's annual crude steel output to <80 million tons, a 50-year low. Japanese firms like Nippon Steel are pivoting to hydrogen-based PPGI/GI production to reduce costs.

South Korea: Loss of 263,000-ton U.S. duty-free quota has forced Hyundai Steel into "emergency management," shifting focus to ASEAN and Oceania markets.