US tests China’s metal with steel tariff plan, opening new front in trade war
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US President Joe Biden has proposed tripling import tariffs on Chinese steel and aluminium, which is likely to trigger a response from China. This move opens a new front in the trade war between the two countries and highlights concerns over China's industrial overcapacity. The US Trade Representative's office has also initiated a probe into China's maritime, logistics, and shipbuilding industries. Analysts expect China to impose countermeasures against the proposed tariffs, potentially through countervailing duties against US firms. China's Ministry of Commerce has expressed dissatisfaction and opposition to the US investigations, stating that the accusations have no factual basis. The American Iron and Steel Institute has noted that while there hasn't been a surge in Chinese steel shipments to the US, the metal is often sent to third countries to be processed into other products that then enter the US market. The proposed tariffs would have a small impact on overall US-China trade, but could signal the start of a new round of trade retaliations. Other countries, such as Thailand and the European Union, have also launched investigations into Chinese steel exports and manufacturers due to concerns over overcapacity. Chinese manufacturers may consider moving their manufacturing bases overseas to diversify potential risks.
#UschinaTradeWar #Tariffs #SteelIndustry #IndustrialOvercapacity