China’s Ministry of Commerce condemns U.S. tariff recommendations on steel and aluminium

In response to the latest U.S. Commerce Department recommendations to raise tariffs on Chinese steel and aluminium imports, China’s Ministry of Commerce published a statement calling the reports “baseless” and “totally inconsistent with the facts.”

Wang Hejun, chief of the trade remedy and investigation bureau at China’s Ministry of Commerce said the country has the right to retaliate if such tariffs are imposed. Mr Hejun urged the Trump Administration to show restraint and comply with “multilateral trade regulations” in his statement published Saturday.

On Friday, Feb 16, U.S. Commerce Department recommended implementing a quota on each country’s steel imports, a tariff of at least 24% on steel imports from all countries, or a tariff of at least 53% on imports from 12 countries, including China.

As for aluminium is concerned, the Department of Commerce suggested a similar quota system or a 7.7% tariff on aluminium shipped to the U.S. from all countries, or a 23.6% tariff on imports from five specific countries and territories, including China and Hong Kong.

China has some of the world’s largest producers of steel and aluminium and if the U.S. decides to impose the new tariffs, they would face substantial business loss. If the actions harm China’s interests, China will “take the necessary measures to protect its legitimate rights,” Wang said.

The U.S. currently has 29 antidumping and countervailing duty orders placed against Chinese steel imports. Commerce Department report emphasises that the “quantities and circumstances of steel and aluminium imports ‘threaten to impair the national security’” of the U.S.

In response to the allegations Wang said that it was the sluggish global economic recovery and slow demand growth in recent years that put the steel and aluminium industries in many countries in crisis. Countries, he said, “should not take a beggar-thy-neighbour approach by unilaterally imposing trade restrictions.”

U.S. President Donald Trump would decide his action based on the Commerce Department’s recommendations by mid-April.