40% US transit tariff takes effect, putting pressure on China's stainless steel export channel in Southeast Asia

2025-09-09 14:08:55

On September 6, 2025, the United States officially implemented a tax increase policy for transit goods on August 7, imposing a 40% tariff on goods identified as being transported through a third country to avoid tariffs. This is undoubtedly adding insult to injury for Chinese stainless steel export enterprises, as the surge in Southeast Asian shipments due to avoiding trade barriers has been impacted. 

The US tariff policy adjustment this time adopts a dual line strategy. On the one hand, it is explicitly stated that a punitive tariff of 40% on transshipment will be included in the clause, specifically targeting the act of evading tariffs through third-party transshipment; On the other hand, expanding the scope of tariffs. On August 19th, the US Department of Commerce announced the inclusion of 407 product categories in the steel and aluminum tariff list, with a applicable tax rate of 50%. The new tariffs came into effect on August 18th, greatly expanding the scope of taxation previously imposed on key commodities. The newly added list covers hundreds of products made of or containing steel aluminum components, including wind turbines and their parts, mobile cranes, railway vehicles, furniture, compressors, and pump equipment. 

According to Chinese customs data, the position of the Southeast Asian market in China's stainless steel export pattern is becoming increasingly important. In July 2025, China's stainless steel exports to six major Southeast Asian countries, namely Vietnam, Malaysia, Indonesia, Thailand, Cambodia, and the Philippines, reached 119600 tons, a month on month increase of 21% and a year-on-year increase of 28%. From January to July 2025, the total export volume of stainless steel to these six countries reached 748200 tons, a year-on-year increase of 25%. Southeast Asia has become an important regional market for China's stainless steel exports.  

The implementation of the US transit tax policy has brought uncertainty to the China Southeast Asia stainless steel trade chain. This policy is aimed at the trade model of "transit through trade routes", which may significantly suppress the flow of goods from Southeast Asia to the US market in the short term, putting pressure on the current high growth trend. Enterprises need to adjust their strategies as soon as possible, reduce their dependence on transit routes, shift towards more compliant and diversified market layouts and localized cooperation, in order to consolidate their position in the Southeast Asian market. The changes in trade patterns have also prompted industrial upgrading and supply chain reshaping.