March 18, 2025, Brussels— As the global steel supply chain undergoes rapid restructuring, sweeping policy changes and environmental regulations targeting galvanized steel have triggered dramatic fluctuations in international trade. From tariff barriers to carbon tax mechanisms, the "butterfly effect" of these policies is profoundly rewriting the industry’s global supply dynamics. 

United States: Section 301 Tariff Hike Slashes Chinese Exports by 30%

The U.S. Department of Commerce announced on March 15 that Section 301 tariffs on Chinese galvanized steel products would increase from 25% to 30%, effective June 2025. This move has already caused a steep decline in Chinese exports to the U.S.—2024 shipments plummeted 32% year-on-year to 1.8 million metric tons, marking the sharpest drop since the 2018 trade war. 

To fill the gap, the U.S. has ramped up imports from South Korea and Mexico. Data shows South Korean galvanized steel exports to the U.S. surged 45% in 2024, while Mexican exports grew 28%, jointly capturing 57% of the U.S. import market. Kevin Dempsey, President of the American Iron and Steel Institute (AISI), stated: “Tariffs have curbed unfair competition, but domestic capacity will need five years to meet demand.”

European Union: Carbon Border Tax Skyrockets Chinese Export Costs

The EU’s Carbon Border Adjustment Mechanism (CBAM), fully implemented in October 2024, now covers galvanized steel. According to Eurostat, Chinese galvanized steel—with an average carbon emission intensity of 2.1 tons per ton of steel—faces an additional €58/ton carbon tax. This has driven a 19% decline in Chinese exports to the EU in 2024, while Turkey, relying on electric arc furnace technology, saw its EU-bound exports rise 23%. 

“Carbon tariffs are redefining global trade logic,” said EU Climate Commissioner Frans Timmermans. “By 2026, CBAM will cover all steel products.” 

India: Import Restrictions Boost Domestic Output Amid Quality Disputes

India’s July 2024 mandate requiring BIS certification for imported galvanized steel has slashed Chinese exports to India by 41% in six months, with Vietnamese and Japanese exports down 28% and 15%, respectively. Meanwhile, India’s domestic production rose 18% year-on-year. However, the Indian Steel Association (ISA) revealed that 15% of locally made products fail to meet the IS 277 standard for zinc coating thickness. 

“Quality controls must not become trade barriers,” warned Edwin Basson, Director General of the World Steel Association. “Artificial technical standards risk triggering retaliatory measures.”

Southeast Asia: Zero-Tariff Alliance Fuels Chinese Production Shift

The ASEAN Zero Tariff Pact for galvanized steel, launched in January 2025, eliminated intra-regional tariffs of 5–10%. This has accelerated Chinese investments in Vietnam and Indonesia—Vietnamese Chinese-owned mills produced 6 million tons in 2024 (63% of national output), while the Krakatau Steel-Ansteel joint venture in Indonesia expanded to 4 million tons annually. 

The EU remains wary. Eurofer data shows Southeast Asian galvanized steel exports to Europe jumped 74% in 2024, with 78% originating from Chinese-linked firms. “This is tariff evasion via production relocation,” said Eurofer Director General Axel Eggert. “The EU must revise rules of origin swiftly.” 

Outlook: Policy Wars Fragment Global Supply Chains

The World Steel Association predicts global galvanized steel trade will shrink 5% in 2025 due to policy interventions, with regionalized supply chains dominating. As Nobel laureate Paul Krugman noted: “When every nation seeks to control its supply chain, everyone pays a higher price.” In this clash of policies and markets, the era of globalization for galvanized steel is fading.