China Warns It May Retaliate If U.S. Imposes Metal Tariffs

China said proposed U.S. tariffs on imported steel and aluminum products are groundless and that it reserves the right to retaliate if they are imposed.

The U.S. recommendations, unveiled by the Commerce Department on Friday, aren’t consistent with the facts, Wang Hejun, chief of the trade remedy and investigation bureau at China’s Ministry of Commerce, said in a statement posted on its website.

Commerce Secretary Wilbur Ross said the U.S. may impose quotas on imports of aluminum and steel, including a tariff of at least 24 percent on steel imports from all countries. While it’s the strongest indication yet that President Donald Trump’s administration is ready to take action on its protectionist agenda, Ross said “it wouldn’t surprise us” if the measures were challenged. The U.S. already has excessive protections on domestic iron and steel products, according to Wang.

“If the final decision impacts China’s interests, China will certainly take necessary measures to protect its own rights,” Wang said.

American steel companies and steelworker unions have been pushing Trump to follow through on his promise to protect the industry. China’s trade partners have complained for years that its industry unfairly benefits from state subsidies, and dumps its products at below-market prices. While China only accounts for about 1 percent of U.S. steel imports, it could challenge U.S. action at the World Trade Organization, a process that could take years.

Source :- bloomberg