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Home Steel News Daido Steel seeks China alternatives amid growing trade pressures
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Daido Steel seeks China alternatives amid growing trade pressures

25 Jun 2025 15:21 reported by Lily Nguyen

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Japanese automotive parts manufacturer Daido Steel, which supplies Honda and other leading automotive brands, faces multiple trade barriers simultaneously. These include a 50% tariff on steel imports to the US, a 25% duty on imported vehicles and automotive components, and China's strategic restrictions on rare earth mineral exports, materials essential for manufacturing automotive motor magnets.

In response to these challenges, Daido Steel is positioning itself as an alternative supplier outside the Chinese supply chain. The company aims to increase production capacity for automotive magnets and expand its industrial applications, anticipating growing demand from customers seeking supply chain diversification away from Chinese sources.

The Japanese supplier has also announced plans to establish a US manufacturing facility, though specific details regarding timing and location remain undisclosed by company leadership.

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