International Trade Options to Tackle Global Steel Overcapacity

Massive global overcapacity and imports of steel – the backbone of modern civilization – threaten the viability of market-based steel industries throughout the world. Attempts at collective action to address the threat have failed for decades. This paper explores several key considerations, features, and World Trade Organization (WTO) rules regarding a potential international agreement on steel overcapacity. This paper also explains how countries can raise their bound WTO tariff rates on steel products as a first step. Until there are new enforceable remedies and rules on global steel overcapacity, countries must use all unilateral and bilateral tools available to address the worst impact of global steel overcapacity, namely excessive and unfairly traded imports of steel and steel-intensive goods. The United States’ leadership over the years and particularly in 2025 is increasingly followed by other countries that are waking up to the global steel overcapacity threat, giving cautious optimism for at least synchronized action and/or a framework for collective action in 2026.