US raises import duties on Chinese steelmakers

US raise taxes to 522% for Chinese steelmakers after accusations of selling below market price.

Following China steel imports contributing to recent issues in the UK steel industry, the US has raised its import duties on Chinese Steelmakers by more than fivefold, after accusing them of selling their products below market prices.

The taxes of 522% specifically apply to Chinese-made cold-rolled flat steel, which is used in car manufacturing, shipping containers and construction.

The US Commerce Department ruling comes amid heightened trade tensions between the two sides over several products.

UK and European steel producers claim China is distorting the global market, leading to major losses after dumping its excess supply abroad.

Following the recent announcement from Tata Steel, the UK’s leading steel company, that they were selling the plants, there have been attempts to rescue the business through buy-outs and government funding.

Tata Steel announced its decision, after losing £1M a day, largely due to falling prices of global steel and a flood of cheap imports from China. Tata Steel has urged the UK and EU to act more urgently to deal with the crisis, and have been working hard to find possible buyers. The UK government have also offered finances to help out buyers in order to keep the plants open and create a rescue plan.

The ruling by the US is only directed at what is a small amount of steel from China and Japan, and won’t have much of an impact. However, the political ruling is significant, with the US saying the Chinese government unfairly subsidises its steel exports, which they claim has led to the loss of some 12,000 workers in the past year due to the unfair competition.

Over 6,000 UK jobs have also been at risk.

China claims the weak economy is more responsible for the industry’s problems and that it has taken steps to reduce its steel production.

The Commerce Department also levied anti-dumping duties of 71% on Japanese-made cold-rolled steel.

The post US raises import duties on Chinese steelmakers appeared first on UK Construction Online.