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US pipes up on China tariffs

US pipes up on China tariffs article image
The USA will consider implementing 100 percent tariffs on Chinese steel pipes to discourage dumping, a move that could spark a protectionist trade war with the Asian giant. The US alleges that the pipes were backed by unfair subsidies. Dumping, the practice of selling product at a price less than its value to edge out competition, is discouraged as an unfair practice. According to the US, Chinese companies have only been able to sell the pipes at less than their true value due to financial assistance from their government. The US Department of Commerce will now "initiate anti-dumping and countervailing duty investigations on imports" in response to a petition backed by organisations including the United States Steel Corp and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union. According to the department: "If the ITC [International Trade Commission] determines that there is a reasonable indication that imports are materially injuring, or threatening material injury to, the domestic industry, the investigations will continue, and Commerce will be scheduled to make its preliminary CVD [countervailing duty[ determination in December 2009 and its preliminary AD [antidumping[ determinations in February 2010." China has labelled the potential imposition of tariffs "protectionist".

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