China Warns It May Retaliate If U.S. Imposes Metal Tariffs

iron and steel products, according to Wang.

“If the final decision impacts China’s interests, China will certainly take necessary measures to protect its own rights,” Wang said.

American steel companies and steelworker unions have been pushing Trump to follow through on his promise to protect the industry. China’s trade partners have complained for years that its industry unfairly benefits from state subsidies, and dumps its products at below-market prices. While China only accounts for about 1 percent of U.S. steel imports, it could challenge U.S. action at the World Trade Organization, a process that could take years.

China has long been at the epicenter of global over-production of steel. But the trade dynamics are shifting as aluminum exports take center stage. In January, China boosted its shipments of the lightweight metal for a third month, as domestic supplies spill overseas, while steel cargoes shrank to the lowest in nearly five years as strong domestic growth mops up production and environmental curbs trim capacity.

Rather than tariffs on all imports, Trump may opt for a more “surgical” approach, Ross suggested at a meeting with lawmakers this week. On steel, for example, the president could go with the recommended option that would levy a tariff of 53 percent on imports from 12 countries — a list that includes China, Russia, India and South Korea — but allow exemptions for allies such as Japan, Germany and Canada.

Japan is viewing this as more of a security issue, said Yasuji Komiyama, director of the metal industries division at Japan’s Ministry of Economy, Trade and Industry. The Commerce Department may invoke a seldom-used section of the 1962 Trade Act, which allows the president to impose tariffs without congressional approval.

Source :   bloomberg

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