Page 14 - THE SOUTH CHINA BUSINESS JOURNAL
P. 14
c. tODAY
How the Steel and
Aluminum Tariffs
Miss Their Mark
When the administration introduced tariffs on It’s not a new problem: The Obama administration
imports of steel and aluminum last year, the wrestled with it as well. More than 30 countries,
move came after years of mounting frustration about a including the G20 and Organization of Economic
real problem. Cooperation and Development (OECD) members,
created the Global Forum on Steel Excess Capacity in
However, it’s now all too clear that the supposed cure 2016 to tackle the problem.
was never suited to the disease. In fact, this “remedy”
has created all kinds of new problems, damaging U.S. The United States has also used targeted tariffs
trade relations with Canada and Mexico in particular. known as “trade remedies” to address unfairly traded
metal imports. There are 172 anti-dumping and
For years, it’s been widely recognized that the countervailing (anti-subsidy) duty orders now in place
problem afflicting the global steel and aluminum against imports from China, with steel and aluminum
markets is massive overcapacity in China. Over the products representing a majority of these orders.
past decade the role of state-owned and state-directed
enterprises has expanded in China, and its investment In many instances, these tariffs soar into the triple
in steel and aluminum production has ballooned digits. These anti-dumping and countervailing
beyond what the Chinese market – or global markets duties are the chief reason steel imports from China
– can bear. accounted for about 1% of total U.S. steel imports
11 AmCham South China
How the Steel and
Aluminum Tariffs
Miss Their Mark
When the administration introduced tariffs on It’s not a new problem: The Obama administration
imports of steel and aluminum last year, the wrestled with it as well. More than 30 countries,
move came after years of mounting frustration about a including the G20 and Organization of Economic
real problem. Cooperation and Development (OECD) members,
created the Global Forum on Steel Excess Capacity in
However, it’s now all too clear that the supposed cure 2016 to tackle the problem.
was never suited to the disease. In fact, this “remedy”
has created all kinds of new problems, damaging U.S. The United States has also used targeted tariffs
trade relations with Canada and Mexico in particular. known as “trade remedies” to address unfairly traded
metal imports. There are 172 anti-dumping and
For years, it’s been widely recognized that the countervailing (anti-subsidy) duty orders now in place
problem afflicting the global steel and aluminum against imports from China, with steel and aluminum
markets is massive overcapacity in China. Over the products representing a majority of these orders.
past decade the role of state-owned and state-directed
enterprises has expanded in China, and its investment In many instances, these tariffs soar into the triple
in steel and aluminum production has ballooned digits. These anti-dumping and countervailing
beyond what the Chinese market – or global markets duties are the chief reason steel imports from China
– can bear. accounted for about 1% of total U.S. steel imports
11 AmCham South China
