USTR's Newly Proposed Tariff Mainly Targets Chinese Metal Imports

SEATTLE (Scrap Monster): The Office of the United States Trade Representative (USTR) has announced publication of a new list of products yesterday by way of which it intends to levy additional tariffs on a wide range of imported products. The proposed items mainly include metals and alloys imported from China. The latest US move is in retaliation to the recent imposition of 25% tariff on several products imported from the US including aluminum waste and scrap.

The 45-page document comprises of approximately 1,300 tariff lines. Almost 8 pages of the document list metals and alloys that are likely to face additional import tariffs. It comprises of approximately 60 iron and steel products and almost 20 varieties of stainless steel products. The list also includes various types of alloyed steel and aluminum alloys. In addition to metals and alloys, the list also covers products from various other industries such as aerospace, robotics, machinery and information and communication technology.

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According to USTR, the published list is preliminary and is subject to review following the public comment period. A final list of products will be issued later. Further, it noted that the list targets products that are likely to benefit from China’s industrial plans. At the same time, it will have minimal impact on the US economy, it added.

The US had imposed Section 232 tariffs on products imported from China, citing national security reasons and the Trump administration’s resolve to protect domestic steel and aluminum industry in the country. In retaliation, China had implemented 25% tariff on recovered aluminum shipments with immediate effect, without even providing adequate warning period.

The US President on Thursday had instructed the USTR to consider $100 billion in additional tariffs against China, which was later supported by U.S. Trade Representative Robert Lighthizer. The USTR’s move to slap additional tariff on more products is likely to escalate the standoff on trade between the two countries.