Illegal Chinese Product Dumping is a Major Problem

President Trump recently announced an upcoming trip to China from May 14 - 15. During this economic summit, the President will have the unique opportunity to address illicit Chinese trade practices. One issue that should be at the top of his list is stopping illegal Chinese “dumping” that is threatening to destroy critical U.S. industries.

There are many different ways that China violates international trade laws in an effort to undercut the United States and weaken our private industries. The goal is clear – reduce American industrial capacity as a part of China’s ongoing quest to become the biggest economy in the world. In order to compete with China on a level playing field, America must enforce international trade laws. 

What Is Illegal “Dumping” and What Are the Remedies?

When one country subsidizes the production of a good in order to flood another country with cheap goods and crater their domestic market, it is known as “dumping.” The practice is anti-free market because it uses subsidies to produce goods beyond consumer demand and distort markets. That is why the U.S. International Trade Commission actively fights dumping around the world.  

Congress has given the President tools to fight unfair product dumping by other countries. The most frequently used weapon against dumping comes from Sections 201 and 301 of the Trade Act of 1974. Those provisions allow the President to implement tariffs on certain products when they are being imported with the intent of hurting a domestic industry. 

Which American Products and Industries Are Endangered By Chinese Dumping?

The main goal of foreign subsidies is to destabilize critical American industries and ultimately put them out of business. In the long-run, our nation and the entire world would then be dependent on communist China. Below are some examples of vital American products that must be protected from illegal Chinese subsidies and dumping schemes. 

Critical Minerals: China controls about 60% of the world’s rare earth mining and nearly 90% of refining capacity. United States Secretary of the Interior Doug Bugrum recently described how the Chinese government uses dumping to maintain dominance in the global mineral industry, saying “they would target that particular mineral, dump a quantity onto the market, drive the price down. And companies, including U.S. companies that were profitable suddenly became unprofitable.”

Fertilizer and Herbicide: Fertilizer prices surging due to Iran’s shutdown of the Strait of Hormuz and China is cynically using the situation to supplant U.S. domestic production. China is a major supplier of farm products and controls 60% of the world’s supply of glyphosate, which is a chemical that is key to herbicide production. If the U.S. becomes dependent on China to grow food the security consequences are obvious and troubling. Congress should pass the Farm Bill and President Trump should address the issue in May. 

Steel: China is both the largest producer and exporter of steel in the world, and has been steadily increasing exports over the last few years (including a 7.5% increase from 2024 to 2025). A number of countries, including the United States, have raised concerns about Chinese steel flooding the market at an incredibly cheap cost. The United States Trade Representative (USTR) has initiated a Section 301 trade investigation into “structural excess capacity and production” for certain sectors within certain countries, including China’s steel production. The notice of the investigation states that “global steel excess capacity is expected to increase to 721 million metric tons by 2027” and the “excess capacity trend is being driven by a wide range of non-market policies.”

Automobiles: The U.S., European Union, and other countries have all identified automobiles, particularly electric vehicles, as products China is subsidizing and dumping into the global market. In 2023, China increased its exports of car chassis into the EU by 327% in order to dump their government subsidized products and weaken Europe’s manufacturing base. THe U.S. cannot let the same thing happen here. 

Food: From disposable food containers to caviar and other luxury foods, China has for years subsidized food and restaurant industry production that has allowed them in more recent years to threaten U.S. producers with unfairly priced alternatives. As we know, food security is national security. President Trump must address food security and Chinese product dumping to protect our American food production.