China warns US of retaliatory measures on steel tariffs

China said the proposed US tariffs on imported steel and aluminum products are unreasonable and that it reserves the right to retaliate if imposed.

The US recommendations released by the Commerce Department on Friday are inconsistent with the facts, Wang Hejun, head of the Commerce Department's Trade and Investigation Department, said in an interview.

Commerce Secretary Wilbur Ross said the US could impose quotas on imports of aluminum and steel, including a tariff of at least 24 percent on steel imports from all countries. While this is the strongest sign 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. According to Wang, the US already has overprotection on domestic steel products.

"If the final decision affects China's interests, China will certainly take the necessary steps to protect its rights," Wang said.

American steel companies and steel unions are pushing Trump to fulfill his promise to protect the industry. China's trading partners have complained for years that its industry is unfairly benefiting from government subsidies and siphoning off its products at below market prices. While China accounts for about 1 percent of US steel imports, it could challenge US action in the World Trade Organization, a process that could take years.

China has long been at the epicenter of global steel overproduction. But trade dynamics are changing as aluminum exports take center stage. In January, China boosted light metal shipments for the third month as domestic shipments spilled overseas, while steel shipments fell to their lowest level in five years as strong domestic growth curtails production and cut back on pollutant emissions. Wednesday.

Instead of imposing tariffs on all imports, Trump could take a more "surgical" approach, Ross said in a meeting with lawmakers this week. For example, on steel, the president could go with a recommended option that would charge a 53 percent tariff on imports from 12 countries - a list that includes China, Russia, India, and South Korea, but allows exemption from allies like Japan. Germany and Canada.

Japan views this as a security issue, said Yasuji Komiyama, head of the metallurgy department at the Ministry of Economy, Trade and Industry of Japan. The Department of Commerce may refer to a rarely used section of the 1962 Commerce Act,