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China Responds to U.S. Aluminum and Steel Tariffs

Thursday, April 5, 2018   (0 Comments)
Posted by: Annie Nguyen
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China Responds to U.S. Aluminum and Steel Tariffs

Market Intel 
April 3, 2018


On March 23, new tariffs on steel and aluminum imports into the U.S. went into effect. While they are being applied to all exporters of steel and aluminum, with a few exceptions, the clear target is China. As we outlined in the March 5, Market Intel article, China is far and away 

the largest producer of steel and aluminum in the world. Even though it doesn’t export much steel to the U.S., China does export a significant volume of aluminum. On April 2, China countered with tariffs aimed at more than 120 U.S. products.

The U.S. actions were taken under Section 232 of the Trade Expansion Act of 1962, which gives the executive branch the ability to conduct investigations to “determine the effects on the national security of imports.” This is critical because under the General Agreement on Tariffs and Trade Article XXI Security Exceptions, a country can unilaterally suspend trade benefits it extends to other countries if it deems that imports are posing a national security threat.

In response to the U.S. action, China notified the...

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