Definite decision by China: Tariffs/Quotas on steel imports
The decision by
China is definite to impose tariffs and quotas on a wide variety of steel imports. Sources report that
China's response is based on the boomerang effect of U.S. safeguard measures through Section 201 (S201) along with that of the EU and many other countries who have followed the same path.
Officials from the
China Iron & Steel Industry Association told the press that three countries will be exempted from the quotas -
Ukraine,
Belarus and
Kazakhstan due to bilateral agreements with those nations.
China is planning to include all countries but stated it will exempt imports from developing countries with up to 3% of the market.
The temporary tariff rate quotas on nine products will reportedly be effective for 180 days. The latest information out of
China is that duties on excess tonnages of main carbon flat products will be about 26% with long products at a much lower rate.
Industry sources report that products covered include:
Semis (slabs and billets)
Plate
HR/CR sheet and coil
Tin mill products
Galvanized/organic
coated steel
Silicon electrical sheet
Stainless plate
Sheet and strip
Rebar and other HR bar
Bright bar
Tubes
Pipes
SteelOrbis reported in our May 22 article that the tariffs are expected to take effect, May 24. Tariff percentages are estimated at between 7%-26% according to traders in
China.
*Details in TradeWatch*