--- title: "Questions from MTG clients: Is it possible to manufacture products competitively in North America without Chinese Steel?" description: A primer on the viability of manufacturing in the US with Chinese Steel image: https://www.mtg-transform.com/hubfs/AI-Generated%20Media/Images/factory%20bringing%20in%20Chinese%20steel%20in%20one%20door%20and%20US%20steel%20in%20the%20other%20door%20A%20%20mark%20on%20the%20price%20of%20the%20finished%20good%20coming%20out%20the%20other%20end%20The%20Ch-3.png --- [![logo](https://www.mtg-transform.com/hubfs/assets/img/logo.svg) ](https://www.mtg-transform.com/) [![Contact Us](https://no-cache.hubspot.com/cta/default/2185827/baf2fb96-e5b5-470c-81c7-362c037c86e4.png)](https://cta-redirect.hubspot.com/cta/redirect/2185827/baf2fb96-e5b5-470c-81c7-362c037c86e4) # Questions from MTG clients: Is it possible to manufacture products competitively in North America without Chinese Steel? - [**](https://www.mtg-transform.com/) - [Why Companies should not leave China](https://www.mtg-transform.com/blog) - Questions from MTG clients: Is it possible to manufacture products competitively in North America without Chinese Steel? February 25, 2026  by [David Collins III](https://www.mtg-transform.com/blog/author/david-collins-iii) ![](https://www.mtg-transform.com/hs-fs/hubfs/AI-Generated%20Media/Images/factory%20bringing%20in%20Chinese%20steel%20in%20one%20door%20and%20US%20steel%20in%20the%20other%20door%20A%20%20mark%20on%20the%20price%20of%20the%20finished%20good%20coming%20out%20the%20other%20end%20The%20Ch-3.png?width=12&name=factory%20bringing%20in%20Chinese%20steel%20in%20one%20door%20and%20US%20steel%20in%20the%20other%20door%20A%20%20mark%20on%20the%20price%20of%20the%20finished%20good%20coming%20out%20the%20other%20end%20The%20Ch-3.png) Many of our clients are looking to reshore in some way. What that looks like depends on the company and their needs. MTG helps these companies understand their manufacturing situation and develop a plan to meet their goals. One of our current clients we work with asked the question “Is it possible to manufacture products competitively in North America without Chinese Steel”. The answer is absolutely; however, it requires more work and investment to be successful. We need to understand the costs and what part they play in the manufacture of the finished goods. ## **Chinese vs US Steel, prices and costs** On a raw material basis, Chinese steel is typically far cheaper than U.S. steel. Hot-rolled coil or structural plate in China might land in the $400–550 per ton range, while U.S. mill pricing can sit closer to $850–1,100 per ton. That difference matters but not as much as you thought once other factors (including tariffs) are considered. ### **Step 1: The Base Price Gap** At the mill level, Chinese hot-rolled coil or structural plate might price around: Meanwhile, comparable U.S. domestic steel might run: On paper, that’s a $300–$500 per ton difference. That gap receives attention, but the raw numbers do not cover all the costs. ### **Step 2: Add Tariffs and Freight** Chinese steel entering the U.S. is subject to: Let’s run a realistic example. **Chinese Steel (Imported into U.S.)** **Total land costs $775 per ton**   **U.S. Steel (Domestic Purchase)** **Delivered cost ≈ $950 per ton**   ### **The Real Steel Delta** After tariffs and freight: **Actual difference ≈ $175 per ton** That is a considerable drop. That’s the number manufacturers should use in serious cost modeling. ### **What That Means for a Finished Product** Now let’s apply this to a fabricated product made entirely in the U.S. Assume: **Using U.S. Steel** **Total factory cost = $6,425** **Using Chinese Steel** **Total factory cost = $6,163** **Net Savings: ~$262 per unit** That’s roughly a **4% reduction in total manufacturing cost** in this example. Important? Yes. Transformational? Usually not. And that assumes: ## **When the Steel Choice Matters More** The decision becomes more sensitive when: If steel weight increases, the savings increase at the same rate. But for many engineered products — industrial equipment, lifts, modular structures, heavy assemblies — steel often represents 30–45% of total cost. In those cases, labor productivity and operational efficiency can outweigh the steel delta. ### **Hidden Variables Often Ignored** When evaluating imported steel, manufacturers should also consider: These factors don’t show up directly in per-ton pricing — but they affect total cost and risk profile. ### **Strategic Perspective** We tell our clients that they should not ask: “Is Chinese steel cheaper?” But instead: “How much does steel actually move the needle in my total cost structure?” After tariffs and logistics, the real-world difference is often around $150–$200 per ton. For many U.S. manufacturers, that translates to a 2–6% total product cost difference. Sometimes that margin matters. Sometimes operational efficiency, automation, speed, and supply stability matter more. ## **How to Manufacture More Efficiently ** Assuming your margins are not razor thin, automation and strong lean processes can shrink the difference further. Automate as much as possible to reduce the costs. We told our client that it would not be possible to close the gap without implementing the following processes: - CNC beam lines - Robotic welding - Automated paint systems - Lean cell assembly There is a cost, in both time and resources, to put these systems and install the equipment. Each company needs to review its goals, priorities, and risk before making investing in these systems. There is no one size fits all solution.  ## Are the Costs Worth the Solution? For our current client, this is a good solution and worth the cost. They were able to control their production and drive improvements. It had the added benefit of new US government contracts. While that work for your company? Come talk to us and let’s find out. **Related:** Reshoring decisions often depend on supplier capability. But what if your supplier won't change? Read [Why Your Supplier Does Not Want Improvements — and What to Do About It](https://www.mtg-transform.com/blog/why-your-supplier-does-not-want-improvements-and-what-to-do-about-it). --- ***What can MTG do to help you improve your operations?***   Evaluating your manufacturing options? Whether you're reshoring, nearshoring, or optimizing your current operations, Manufacturing Transformation Group can help you build a plan that works. [Book a Free Consultation](https://www.mtg-transform.com/contact-us) Topics: [Manufacturing Consulting](https://www.mtg-transform.com/blog/topic/manufacturing-consulting), [Manufacturing In China](https://www.mtg-transform.com/blog/topic/manufacturing-in-china), [Localized Expertise](https://www.mtg-transform.com/blog/topic/localized-expertise), [reshoring considerations](https://www.mtg-transform.com/blog/topic/reshoring-considerations), [financial](https://www.mtg-transform.com/blog/topic/financial) ![David Collins III](https://www.mtg-transform.com/hubfs/David%20Collins%20Image.jpeg) ### [David Collins III](https://www.mtg-transform.com/blog/author/david-collins-iii) David Collins III is the CEO of Manufacturing Transformation Group. He has lead the company since 2021. Since that time, MTG has expanded from its original China focus to become a global company with operations in China, the US, South America, Vietnam, and Europe. He is an Iraq War (US Army) and Afghanistan War (State Dept) Veteran and a graduate of Johns Hopkins SAIS. [**](https://www.linkedin.com/in/david-c-collins-iii-aa4b925/) ### Subscribe to receive MTG tips & resources ### Related articles Notes from the Field: How We Found a Factory in China in 3 Weeks — and Saved $100K David Collins III Read More Notes from the Field April 2026 David Collins III Read More Understanding the New Product Introduction (NPI) Process David Collins III Read More [![logo-white](https://www.mtg-transform.com/hubfs/MTG/img/logo-white.svg "logo-white")](https://www.mtg-transform.com/) [** ](http://www.linkedin.com/company/3268172?trk=vsrp_companies_res_name&trkInfo=VSRPsearchId%3A63606291375275258275%2CVSRPtargetId%3A3268172%2CVSRPcmpt%3Aprimary) [** ](https://www.youtube.com/channel/UCJmBQ1Ffo0wrpDM49XWIgdA) [contact@mtg-transform.com](mailto:contact@mtg-transform.com) © 2026. All Rights Reserved. ```json { "@context" : "http://schema.org", "@type" : "Article", "author" : { "@type" : "Person", "name" : "David Collins III" }, "dateModified" : "April 16, 2026, 9:54:17 PM", "datePublished" : "February 26, 2026, 12:52:38 AM", "description" : "A primer on the viability of manufacturing in the US with Chinese Steel", "headline" : "Questions from MTG clients: Is it possible to manufacture products competitively in North America without Chinese Steel?", "image" : { "@type" : "ImageObject", "url" : "https://2185827.fs1.hubspotusercontent-na1.net/hubfs/2185827/AI-Generated%20Media/Images/factory%20bringing%20in%20Chinese%20steel%20in%20one%20door%20and%20US%20steel%20in%20the%20other%20door%20A%20%20mark%20on%20the%20price%20of%20the%20finished%20good%20coming%20out%20the%20other%20end%20The%20Ch-3.png" }, "mainEntityOfPage" : { "@id" : "https://www.mtg-transform.com/blog/questions-from-mtg-clients-is-it-possible-to-manufacture-products-competitively-in-north-america-without-chinese-steel", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.mtg-transform.com/hubfs/MTG%20Logo.png" }, "name" : "Manufacturing Transformation Group (MTG)" }, "url" : "https://www.mtg-transform.com/blog/questions-from-mtg-clients-is-it-possible-to-manufacture-products-competitively-in-north-america-without-chinese-steel" } ``` ```json { "@context" : "https://schema.org", "@type" : "FAQPage", "mainEntity" : [ { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Yes, but it requires careful planning. North American steel is available but typically at higher cost. The total cost analysis must include tariff exposure on Chinese steel, freight costs, lead time risk, quality consistency, and supply security. For many manufacturers, the total landed cost of North American steel is competitive when all risk factors are included." }, "name" : "Can manufacturers produce competitively in North America without Chinese steel?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Alternatives include domestic US steel producers, Canadian suppliers, Mexican sources under USMCA, and other international suppliers from countries not subject to Section 232 tariffs. The right choice depends on the specific grade, volume, and quality requirements. Reshoring decisions should be based on total cost of ownership, not unit price alone." }, "name" : "What are the alternatives to Chinese steel for manufacturing?" } ] } ```