(VOVWORLD) - The US last Wednesday announced a decision to levy tariffs of 16.5 to 81% on imports from China of aluminum foil, depending on the subsidy rates producers receive from the Chinese government. This is one of the first acts by the Trump administration to reduce the US trade balance with China.
 (Photo: AFP/Getty Images) |
Loften Aluminum, China’s biggest aluminium foil exporter, and 11 other firms have condemned the US ruling, saying they will appeal against the decision to the Commerce Department.
China is the world’s leading aluminum foil exporter, accounting for half of the world output.
US imports of aluminum foil from China totaled 390 million USD last year. This April the US Department of Commerce began investigating accusations that Chinese aluminum foil companies were selling their products to the US market at below market prices. These companies are also believed to receive subsidies from their government. This has forced many US aluminum foil producers to close or temporarily halt their production.
President Trump says the US aluminum and steel industry faces unfair competition in the international market and he will seek ways to prevent dumping to protect American producers.
The US decision will boost trade tensions between the US and China. The US trade deficit with China makes up 70% of the US trade gap and is pushing the Trump Administration to change its cooperation guideline with China.
US authorities are considering tougher trade policies for China, including new barriers for aluminum imports.
Trade between Beijing and Pyongyang has been growing, meaning that Washington has failed to persuade Beijing to take tougher measures against North Korea’s nuclear program.
The US Treasury Department recently imposed sanctions on 2 citizens, a transport company, and a bank in China for doing business with Pyongyang. The punishment aims to cut off financial resources for Pyongyang’s nuclear and missile programs.