(Bloomberg) — After the Trump administration took a similar stance, South Korea is attempting to impose tariffs on certain Chinese steel and producers due to worries about a flood of lower-priced goods entering the market.
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The trade ministry said in a statement, citing an initial inquiry, that the practice had hurt South Korea’s steel industry. According to the statement, the government plans to apply a provisional tax of up to 38.02% on Chinese imports of hot-rolled steel plates.
According to the statement, South Korea also wants to impose a charge of around 38% on suppliers, such as Hunan Valin Xiangtang Iron and Steel Co., and a tariff of about 28% on Baoshan Iron & Steel Co.
After the finance ministry gives its approval, the charges will go into effect.
Due to a protracted property crisis that reduced demand, China’s steel sector has begun to curtail output; yet, the Asian country is still producing far more than it can use domestically, which forces goods overseas. China’s steel exports reached a nine-year high last year.
President Trump tightened his crackdown on what administration officials claimed were attempts by nations like China to evade current duties earlier this month by imposing a 25% tariff on all US imports of steel and aluminum products. He imposed a 10% tariff on all imports from China a week before to that.
Hyundai Steel Co. of South Korea filed a complaint with the authorities after claiming that an influx of hot-rolled steel plates from China and Japan had negatively impacted its operations. The nation’s largest steel manufacturer, Posco Holdings Inc., closed its No. 1 wire rod plant in Pohang due in part to low-cost Chinese goods.
–With assistance from Shinhye Kang.
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