A Chinese steel industry group has cautioned that the newly imposed 25% tariff on steel imports to the United States could negatively affect the sector, a state media reported on Thursday.
“The US move is essentially an act of trade protectionism,” the China Iron and Steel Association (CISA) said in a statement. “In the short term, the impact on (China’s) steel exports is limited. But in the long term, the US move could lead other countries to follow suit, thereby reducing (China’s) steel export competitiveness,” it added.
Despite being the world’s top producer of steel, China last year accounted for only a small proportion of US steel imports. However, a slowdown in the domestic construction sector has led to a sharp increase in Chinese steel exports. This surge has raised concerns in Washington, where officials warn that overcapacity in global markets could negatively impact American steel producers.
The executive order on imposing new 25 percent tariffs on steel and aluminium is due to come into effect on March 12.
“From a medium- and long-term perspective, the (US) increase in tariffs will have an adverse impact on industrial and supply chains in the global steel industry, including the Chinese steel industry,” CISA deputy secretary-general Zhang Longqiang said, according to CCTV.
Beijing’s commerce ministry on Thursday denounced the tariffs as “typical unilateral and protectionist behaviour”.
Chinese commerce ministry spokeswoman He Yongqian said, “Many countries have clearly expressed their opposition, and there are also strong opposition voices within the United States,” when asked a question about the steel and aluminium tariffs at a press conference
She also added that China urges the United States to abandon its zero-sum mentality, do better practices, and return to the correct track of the multilateral trading system in terms of the trade war that has begun.