U.S. slaps 266 percent anti-dumping duty on some Chinese steel products

The U.S. Department of Commerce has slapped preliminary anti-dumping duty on imports of cold-rolled steel from China, as domestic steelmakers battle falling global prices and job losses.

The 265.79 percent duty will into effect from next week, but will only be confirmed in a final decision due in a few months. Six other countries, including India, have been named in the list, but the tariffs imposed are lower.

Falling global prices due to overcapacity and a slowdown in Chinese demand has impact steelmakers such as U.S. Steel Corporation and ArcelorMittal that has large U.S. operations. Both these companies have campaigned for protective duties on steel products.

The United Steelworkers (USW), which represents nearly a million U.S. workers across sectors, welcomed the move.

“Today’s decision comes as welcome news to the steelworkers at American steel mills who produce cold-rolled flat steel products. It is one step forward in the fight by USW-represented members and the companies to make our nation’s trade policies work better for working Americans,” said Leo W. Gerard, USW International President

He said more than 12,000 steelworkers are either on layoff or threatened by layoffs from the mushrooming steel import crisis.

The preliminary order announced on cold-rolled steel products will result in the U.S. Customs and Border Protection (CBP) being instructed to require cash deposits based on the duty rates for cold-rolled steel imports from China and the other six countries until a final decision is made by the International Trade Commission (ITC) later this year.

China has said it will cut 150 million tonnes steel-making capacity over the next few years and that the cutback will impact as many as 1.8 million jobs in the steel and mining industry this year alone.

 

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