U.S. Places New Duties on Steel From China

The U.S. government is imposing new duties on imports of steel pipes from China, the latest sign of trade tensions between the two countries.

The case is the largest steel trade dispute in U.S. history and will impact about $2.8 billion worth of Chinese imports.

A group of U.S. steelmakers and the United Steelworkers union sought the duties in April, arguing that the Chinese steel industry was flooding the U.S. market with pipes sold at unfairly low prices, a practice known as "dumping."

The Chinese companies also benefited from government subsidies, the U.S. industry said.

The dumping harmed the U.S. industry, USW President Leo Gerard said earlier this month, and has caused the loss of more than 2,400 jobs since the beginning of this year.

Imports of the Chinese steel pipes rose by nearly 360 percent from 2006 to 2008, according to the Commerce Department.

The U.S. International Trade Commission voted Wednesday to impose duties between 10.36 percent and 15.78 percent on the pipes, which are mostly used in the oil and gas industries. Those duties are intended to offset the government subsidies that the U.S. government says China provides its steelmakers.

The ITC will decide in the spring whether to impose additional tariffs of up to 96 percent to penalize Chinese steelmakers for dumping.

Roger Schagrin, counsel for the United Steelworkers and five steel manufacturers, said the decision could enable the U.S. steel industry to ramp up production and re-hire workers by the second half of next year, once current inventories of steel pipe are sold off.

Prices for steel pipe fell by half from their peak in 2008 through September 2009, he said, driven down by low-priced Chinese imports.

The six-member ITC voted unanimously that the U.S. industry was harmed or threatened with harm by the imports.

But Daniel Porter, a lawyer representing the Chinese steel exporters, said the U.S. industry was hurt by a boom-and-bust cycle that resulted when the price of oil soared to about $140 a barrel in the summer of 2008, only to drop below $50 less than a year later.

Higher oil prices spurred more drilling, which caused oil companies to order more of the pipes. Those orders dried up when prices fell, Porter said.

"If demand collapses, that affects everyone," he said. "It has nothing to do with imports."

Porter wouldn't comment on whether the Chinese exporters will appeal the ruling. The companies could appeal to the U.S. Court of International Trade in New York, or China's government could take the fight to the World Trade Organization.

The Chinese embassy couldn't be reached for comment.

In addition to the USW, the complaint was filed by U.S. Steel; V&M Star LP; V&M Tubular Corp.; TMK IPSCO; Evraz Rocky Mountain Steel; Wheatland Tube Corp.; Maverick Tube Corp.; and Northwest Pipe.

China and the U.S. are engaged in several trade disputes over market access for goods ranging from poultry and tires to Hollywood movies.

In another steel dispute, the Commerce Department said Tuesday that it may impose antidumping tariffs of 14 percent to 145 percent on $91 million of steel grating imported from China. It defines steel grating as two or more pieces of steel joined by any assembly process. The department will make a final decision in that case in April.

[Dgunner]

There is a simple solution to all this but the americans seem to be blind to the self healing process it will take to demolish the foriegn practices. The very same people complainin are the same people whom rise off thier knees after praying to God to help this country and leave thier churches and drive to WAL_MART and spend thier american money. This in itself causes me and im sure a couple million others to laugh our american a--es into blissful state of emotional wonderment. HEY D-A'S JUST DONT BUY NON AMERICAN MADE PRODUCTS.MORONS.

[ajapierce]

Hey Johnny465, stop bashing the US Dollor. You're only being sour about it because the rest of the world wants it.

The US Dollar has in less then 150 years replaces the most desired currency for the longest period of time, so don't be hating a currency that is the most popular.

In regards to Stell Dumping from China. Well China doing the same exact thing Japan did before WWII, except Japan bought a lot of our steel then resold it back at 50% to demise the steel market. Sounds about exactly like what China is doing.

It's about time we even out the Tariff's for trade to all countries. I'm sick of the trade inbalances. Maybe this will get Senate, Congress to listen up and say, "Let's make more jobs mandatory in this Country Again, and stop sending them oversees".

If those other countries who get a lot of our dolloars oversees have be doing in for more then 10 years and cannot find business else where, then that's just plain wrong. If they want their country to be more independant, then they need to start doing more on their own.

[johnny465]

China should dump the US dollar and that will make up the extra charges the US trys to impose on China. The only rules the Americans know is when it favors them only
Time for change
Dump the worthless US Dollar

[SocietysNightmare]

"A group of U.S. steelmakers and the United Steelworkers union sought the duties in April, arguing that the Chinese steel industry was flooding the U.S. market with pipes sold at unfairly low prices ...."

"Unfairly Low Prices" is an oxymoron if ever I saw one. I imagine steel union workers have an arrangement similar to what autoworkers had. Well, autoworkers were OVERPAID. Thus, consumers were OVERCHARGED for vehicles. Bottom line ..... shareholders need a reality check. Your profit margin WILL NOT remain the same as pre 9/11! Meet the Chinese's price, or stop complaining about the competition being more affordable.

[johnny465]

Good comment you are totally correct wish other would realize what is so easy to see that my 12 year old understands

[retm-w]

So it's OK for more american jobs to be lost, due to unfair competition. And what about all the non union steelmakers in the U.S. that can't compete with China? I would guess you are OVERPAID for what you do to.

[Aquinus]

Sounds like we are starting to have the same kinds of problems with China we had with Japan before World War II. I have often wondered what will happen when we start demanding an equal playing field with countries who have taken production and profits away from the United States. And there are even larger issues to consider.
This may just be the beginning. There is strong resentment here toward wealth and our own politicians who have allowed(mostly be lobbying efforts) cheap labor outside the U.S. to undermine the Production Workers in our country.
Things like NAFTA and the other global dropping of trade "barriers" have only benefited wealth, not American workers. Now, at least THIS President has the courage to do what previous administrations did not. Previous administrations either were misled what the dropping of trade barriers would do, were complicit in helping SOME Americans get rich while a whole lot of folks got poor, or simply did not want to be the administration to get in the way of wealth's greed.
Time to wake up to how presidents of the past 40 years did nothing to stop the erosion of American jobs and the rise of a small class of wealthy individuals. In fact, we all know that some of our past presidents ENCOURAGED this process and were lobbied, lauded and rewarded for their efforts to tolerate this moving of labor out of our country by wealth.
Maybe now these presidents will feel some sense of shame and deep regret for having allowed this to happen. It is a shame we cannot criminalize their actions. We can't because many who benefited are now part of our CONGRESS!

[retm-w]

It's about time the U.S. started getting some backbone on trade issues. These other countries have high import taxes and limits on goods coming from the U.S. Yet they subsidize their slave labor products,to keep their price lower then market prices and dump them in the U.S.

[johnny465]

Remember you have benifited big time with your worthless dollar and the cheap cost of product

[ianlou]

Finally!!!
Some balls in Washington!!!

[cbs_tom]

If the world wants an even playing field, tariff's should be in place. This is long overdue!

[johnny465]

Plus bring down your worthless dollar and that will also level the playing field for all other countrys