- The U.S. Department of Commerce levies a
122.5% tariff on Chinese tin plate steel imports, inciting criticism from
China.
- While Germany and Canada face lower
tariffs, five other countries, including Britain and South Korea, are
exempt from these duties.
- The WTO backs the U.S. in a separate
trade dispute, ruling China's counter-tariffs on U.S. steel and aluminum
as a violation of trade agreements.
Via Metal Miner
The
U.S. Department of Commerce recently decided to enforce preliminary
anti-dumping duties on imports of tin mill and tin plate steel from China at a
duty rate of 122.5%. As this is the highest preliminary rate, the move provoked
severe criticism from trade analysts and experts across China.
This tariff also applies to China’s leading manufacturer, Baoshan
Iron and Steel. In addition, the Department of Commerce plans to apply duties
of 7.02% on tin mill imports originating from Germany and 5.29% on imports from
Canadian producers. These moves will affect major products from each country,
including companies like Thyssenkrupp and ArcelorMittal DOFASCO. However, the
Department clarified that it would not be imposing anti-dumping duties on tin
mill steel imports from Britain, the Netherlands, South Korea, Taiwan, and
Turkey. Tin mill steel is a lustrous silver metal extensively employed in
crafting cans for food, paint, aerosols, and various other containers, with
their specific price points being outlined on MetalMiner Insights. As a
result, tin plate is central to many manufacturing processes.
China’s Response
Chinese
analysts responded quickly to the move, criticizing the U.S. and labeling the
new duty “unfair.” According to a report in the Global Times, analysts said the tariff rates imposed on Chinese imports
were substantially higher than those on imports from Canada and Germany. In
addition, they argue this could potentially violate World Trade Organization
(WTO) regulations. Others stated that the actions taken by the U.S. government
were both unilateral and protectionist.
China
Likely Tapped Its Crude Inventories In July
The
imposition of these fresh anti-dumping duties aimed to safeguard the United
States’ domestic steel sector against cheap imports. Simultaneously,
policymakers hoped the move would help level the playing field for U.S.
producers. Indeed, proponents argue that the duties seek to counter the adverse
effects of such “dumping” practices and support the local industry.
Explaining
why the preliminary duty was the highest against China as compared to the other
two nations, Reuters quoted a representative from the U.S. Commerce Department.
They claimed that China’s higher rates resulted from a lack of cooperation from
a major producer during the investigation, leading to an “adverse inference”
determination. Other respondents also failed to demonstrate independence from
the Chinese government.
Meanwhile,
a Global Times report quoted Chen Jia, an independent analyst in global
strategy, as saying the move went beyond the boundaries of competitive
anti-dumping inquiries. According to Jia, the decision violated the WTO
principles, including free trade, fair competition, and equitable negotiations.
He further alleged that the steel and aluminum tariffs imposed by the U.S.
represented a violation of global trade norms.
According
to figures from the U.S. Commerce Department, China contributes about 14% of
U.S. imports. Meanwhile, Canada and Germany together account for roughly 30%,
New WTO Order Against Earlier Chinese Tariffs on Metals
The
latest trade spat near-coincided with a fresh WTO report detailing Chinese
counter-tariffs against the U.S.’ Section 232 tariffs on steel and aluminum,
favoring the U.S.
The WTO ruled that China’s imposition of tariffs on $2.4
billion worth of U.S. goods in response to former President Donald Trump’s
steel and aluminum tariffs clearly violated its core trade agreements (get
weekly updates on metal market updates like these through MetalMiner’s free weekly newsletter).
The
World Trade Organization (WTO) is the only international organization that
deals with the rules governing trade between countries. Its main function is to
promote as much as possible the smooth running, predictability and freedom of
trade