Posts Tagged ‘Chinese Steel’

The US is already in a trade war with China

June 9, 2016

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President Obama has a habit of undercutting Republicans by stealing their issues.  He is doing that to Donald Trump on trade.

Trump has threatened a trade war with China, but the Obama administration has already launched a trade war.

Trump proposes to hit China with protective tariffs of up to 45 percent on goods shipped to the United States.   But the Obama administration has authorized U.S. Steel Corp. to ask the International Trade Commission for permission for total ban on Chinese steel exports to the United States.

U.S. Steel executives ask for the ban in retaliation for theft of their trade and manufacturing secrets by Chinese hackers.

Earlier this year the Obama administration has imposed a tariff of 522 percent on cold-rolled flat steel from China and 72 percent of this type of steel from Japan.  Cold-rolled flat steel is used in auto manufacturing, shipping containers and construction.

The justification for the tariff is that Chinese companies are dumping steel on the world market below their cost of production.  They produced more steel than they can profitably sell, and so are trying to cut their losses by selling their product for whatever they can get.

Based on a quick reading of on-line news articles, I think there is a basis for the charges against the Chinese.  European countries also charge China with dumping.

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