Axis of Evil

U.S. slaps heavy duties on Chinese steel shipped from Vietnam
Reuters

WASHINGTON -- The U.S. Commerce Department on Monday slapped steep import duties on steel products from Vietnam that originated in China after a final finding they evaded U.S. anti-dumping and anti-subsidy orders.
The decision marked a victory for U.S. steelmakers, who won anti-dumping and anti-subsidy duties against Chinese steel in 2015 and 2016 only to see shipments flood in from elsewhere. 

The industry has argued that Chinese products are being diverted to other countries to circumvent the duties.
U.S. customs authorities will collect anti-dumping duties of 199.76 percent and countervailing duties of 256.44 percent on imports of cold-rolled steel produced in Vietnam using Chinese-origin substrate, the Commerce Department said in a statement.
Corrosion-resistant steel from Vietnam faces anti-dumping duties of 199.43 percent and anti-subsidy duties of 39.05 percent, it said.
The department has said it would apply the same Chinese anti-dumping and anti-subsidy rates on corrosion-resistant and cold-rolled steel from Vietnam that starts out as Chinese-made hot-rolled steel.
The duties will come in addition to a 25 percent tariff on most steel imported into the United States that resulted from the Trump administration’s “Section 232” national security investigation into steel and aluminum imports.
Although the steel subject to the latest anti-dumping and anti-subsidy duties was processed in Vietnam to be made corrosion resistant or cold-rolled for use in autos or appliances, the Commerce Department agreed with the claims of American producers that as much as 90 percent of the product’s value originated from China.
The global steel industry is struggling with a glut of excess production capacity, much of it located in China, that has pushed down prices.
The decision followed a European Union finding in November that steel shipments from Vietnam into the EU also circumvented tariffs.
The Commerce Department said that after anti-dumping duties were imposed on Chinese steel products in 2015, shipments of cold-rolled steel from Vietnam into the United States shot up to $215 million annually from $9 million, while corrosion-resistant steel imports rose to $80 million from $2 million.
The case stems from a petition filed by U.S. producers ArcelorMittal USA, Nucor Corp, AK Steel Holdings Corp and United States Steel Corp alleging that Chinese producers began diverting their steel shipments to Vietnam “immediately” after the duties were imposed. 

Chinese cheating: Chinese products are being diverted to Vietnam to circumvent U.S. anti-dumping and anti-subsidy duties

U.S. slaps duties on "Vietnamese" steel originating from China

By David Lawder

WASHINGTON -- The U.S. Commerce Department on Tuesday slapped steep import duties on steel products from Vietnam that originated in China after finding they evaded U.S. anti-dumping and anti-subsidy orders.

The decision marked a victory for U.S. steelmakers, who won anti-dumping and anti-subsidy duties against Chinese steel in 2015 and 2016 only to see shipments flood in from elsewhere.
Chinese products are being diverted to third countries to circumvent the duties.
The Commerce Department said it would apply the same Chinese anti-dumping and anti-subsidy rates on corrosion-resistant and cold-rolled steel from Vietnam that starts out as Chinese-made hot-rolled steel.
Although the product was processed in Vietnam to be made corrosion resistant or cold-rolled for use in autos or appliances, the Commerce Department agreed with the claims of American producers that as much as 90 percent of the product’s value originated from China.
The global steel industry is struggling with a glut of excess production capacity, much of it located in China, that has pushed down prices. 

A G20 forum last week failed to make significant progress toward a solution amid divisions between Beijing and Washington.
The Vietnamese-shipped cold-rolled steel will face combined preliminary U.S. anti-subsidy and anti-dumping duties of 531 percent, while the corrosion-resistant steel will face combined duties of 238 percent -- more than high enough to shut both products out of the U.S market. 

Final duties are expected to be announced on Feb. 16.
The decision followed a European Union finding in November that steel shipments from Vietnam into the EU also circumvented tariffs.
After anti-dumping duties were imposed on Chinese steel products in 2015, shipments of cold-rolled steel from Vietnam into the United States shot up to $295 million annually from $11 million.
The case stems from a petition filed in September by U.S. producers ArcelorMittal USA, Nucor Corp, AK Steel Holdings Corp and United States Steel Corp that alleged that Chinese producers began diverting their steel shipments to Vietnam “immediately” after the duties were imposed.
The industry is awaiting the Commerce Department’s recommendation from its study on whether steel imports pose a threat to U.S. national security and broad import restrictions should be imposed. Although the study has been largely completed, the recommendations have been delayed until Congress passes tax legislation.
By law, the Commerce Department’s findings are due by late January.

Theresa May slammed as 'naive' for failing to block higher tariffs on Chinese steel by EU boss

The EU Commission chief warned failure to protect Europe's steel industries from Chinese dumping would fuel anger
By Jack Blanchard

Brussels boss Jean Claude-Juncker has slammed “naive” Theresa May for blocking higher tariffs on Chinese steel.
The EU Commission chief warned that failure to protect Europe's steel industries from Chinese dumping would fuel populist anger across the continent.
“I cannot accept that the Americans are protecting their industry and we are the naïve guys wanting to charm the others,” he raged.
Mr Juncker was speaking at the end of Mrs May's first EU summit as Prime Minister where she continued to argue that tariffs should not be raised.
The EU Commission and other major steel producers including Germany and France want swingeing US-style trade tariffs to protect their industries from cheap Chinese steel.
Jean-Claude Juncker has slammed Theresa May
But Britain has been blocking reform of the EU's 'lesser duty rule' – which keeps tariffs low - since 2013, despite the near-collapse of the British steel industry and the loss of thousands of jobs.
At the same time Britain supports giving China 'market economy' status within the EU which will allow the Asian giant to carve out even more of the market.
The Mirror revealed that even Mrs May's most trusted Downing Street adviser, chief of staff Nick Timothy, has slammed the lack of high tariffs as “unthinking liberalism”.
Save Our Steel campaign

Mr Juncker said if Europe does not act to protect its steel industry it will pour fuel on the anti-EU anger which has swept across the continent.
“If you want to fight against stupid populism, you have to create the pre-conditions for this fight to be successful,” he said.
“If we are telling the entire world that now China will receive market economy status without us improving our trade defences… then we are preparing the way for populists to attack the European Union.”
Mr Juncker will put forward concrete proposals on reforming the EU's 'trade defences' next month and the row will continue between British and Brussels officials over the coming weeks.
But Mrs May made clear she will not change her stance and said tariffs must be “balanced” to protect firms who buy cheap steel.
“We've had a discussion about the modernisation of trade defence instruments," the PM said as the summit finished.
"What we've agreed around the table is that we look at all of those instruments and we do that in a balanced way.
“And that's what's important. It's important to balance the interests of users, of producers and of consumers.”