U.S. Set to Impose Heavy Duties On Chinese Steel Imports

It looks like D. Trump isn’t the only one interested in protectionist policies. I find what’s taking place in the steel industry supremely important to the facade of free trade, that, seemingly, goes just one way. For years, U.S. steel workers have been crucified by asshole Chinese dumping tactics, which drove scores of producers out of business. Apparently, the Chinese went too far and the United States is responding, in kind.

The FT is reporting the U.S. is set to impose a gangster 500% tariff on Chinese steel.

Via FT:

Wednesday’s ruling by the International Trade Commission, an independent government agency, follows a recommendation by the US Commerce Department in May for heavy duties to be imposed on imports of cold-rolled steel products from China and Japan.

The anti-dumping case brought by the US industry last year is one of three that Washington is considering this summer and comes amid a growing row between the US and China over steel, reports Shawn Donnan in Washington.

It also comes as the EU is considering whether to bow to Beijing’s demands and grant it “market economy” status in the World Trade Organisation.

The issue is a hugely popular one in rust belt states, particularly in an election year.

Senator Rob Portman, who is fighting a tough battle for re-election in Ohio, claimed on Wednesday that his testimony to the ITC had helped secure the ruling.

“Ohio steelworkers produce the highest quality steel in the world, and yet they are facing a crisis,” said Portman. “Nearly 1,500 Ohio steelworkers were laid off last year through no fault of their own. Today the ITC recognized exactly what I told them: that unfair, dishonest practices from competitors in China and Japan are hurting our communities. Today’s ruling is the next step in leveling the playing field, and it is a big win for Ohio steelworkers.”

This is net benefit for X, NUE, AKS, NUE and STLD.

NOTE: X is one of my 15 GARP portfolio stocks for the second half of 2016, based around this very thesis.