Definite decision by China: Tariffs/Quotas on steel imports

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*