The Rising Influence of Rising Affluence

[DewDiligence]

US steelmakers complain re China’s tariff evasion:

http://www.wsj.com/articles/steelmakers-in-u-s-tofile-complaints-over-alleged-tariff-evasion-by-chinese-competitors-1474583627

Steel producers in the U.S. plan to file complaints with the Commerce Department on Friday and Monday, alleging Chinese steelmakers have been routing metal shipments through Vietnam to avoid U.S. import tariffs, a lawyer for the steelmakers told The Wall Street Journal.

The petitions are backed by U.S. Steel Corp. , Nucor Corp. , AK Steel Holding Corp. and ArcelorMittal.

…The complaints allege the Chinese have shipped steel to Vietnam, modified it, for example adding zinc to make it corrosion-resistant, and then sent it to the U.S., while paying Vietnam’s U.S. tariff rate, which is much lower than China’s.

…The Commerce Department will have 45 days to decide whether to open an investigation. Under rules designed to prevent such a tariff-evading practice, known as circumvention, the department could expand tariffs on metal that originates in China and comes into the U.S. from Vietnam.