White House: China's Overcapacity Is Causing Global Steel Crisis

The White House has responded to China's decision to impose tariffs on 128 different categories of US imports - primarily foodstuffs and industrial items. The tariffs, which went into effect Sunday but were previewed more than a week ago, are meant to be a response to the Trump administration's Section 232 tariffs on steel and aluminum (not to be confused with the $60 billion in section 301 tariffs unveiled later).

Steel

In a statement posted on China's Ministry of Finance website, China’s Customs Tariffs Commission confirmed reports from March 23, stating that additional duties on 128 kinds of products of US origin would be introduced from Monday "in order to safeguard China’s interests and balance the losses caused by the United States additional tariffs."

In response, a White House Deputy Press Secretary Lindsay Walters said the US tariffs were justified because China is creating a global steel glut with its oversupply.

"China’s subsidization and continued overcapacity is the root cause of the steel crises. Instead of targeting fairly traded U.S. exports, China needs to stop its unfair trading practices which are harming U.S national security and distorting global markets," Walters said in an emailed statement.

Meanwhile, the Chinese are calling for another round of trade talks with the US after the US didn't respond to China's March 26 request for a dialogue on the steel and aluminum tariffs, per Bloomberg.

Earlier Monday, White House Press Secretary Sarah Huckabee Sanders said the president is "doing exactly what he said he was going to do" to help reduce the US trade deficit with China.

As a reminder, here's the list of US imports upon which China has imposed tariffs of between 15% and 25%.

Imports

 

Comments

Michigander beemasters Tue, 04/03/2018 - 14:42 Permalink

Chinas steel is no better than the other cheap shit they make. Pipe flanges made from forgings are shit...they crack through the hub of the flange. Plate steel is full of laminations. I work in the pressure vessel industry and no one will accept a pressure vessel made from Chinese steel.

But we buy it for out bridges...

In reply to by beemasters

DEMIZEN gregga777 Tue, 04/03/2018 - 01:18 Permalink

output stops at zero profit equilibrium that's all I know.  the rest is esoteric bullshit and market manipulation. in plain terms, nobody can sell at loss forever. I don't believe in free lunches.

why should we bother with Chinese misallocation of resources? ok, there is some short-term steel price war pressure but me, the consumer I don't care. wouldn't Chinese money be better spent achieving economies of scale instead of giving out coupons to the end buyers? sure but there are barriers and they allocate the resources to get around the barriers. cant blame them.

 

The world trade is manipulated and fucked up beyond repair, I have no idea who is to blame, I get a headache when I just think about it

all I want is the best bang for the buck. period.

 

In reply to by gregga777

Zero Point Catullus Mon, 04/02/2018 - 23:54 Permalink

China is the perfect libertarian paradise for you then. There's no protection for buyers, from things like toxic, or fake products whatsoever! Sounds awesome till your baby is drinking melamine I guess. Oh... And there's the small matter of sellers being propped up by their cronies in the utterly corrupt government. My bad, it's fucked after all.

In reply to by Catullus

arby63 Mon, 04/02/2018 - 22:35 Permalink

China is well aware of the steel overcapacity. They simply preferred to ignore it until someone called them on it. It's just common sense that Trump made a move. It should have been done long ago. None of this means a "trade war" is imminent. That's drama talk.

gregga777 Mon, 04/02/2018 - 22:55 Permalink

As a reminder, here's the list of US imports upon which China has imposed tariffs of between 15% and 25%.

The US products all appear to be foodstuffs. In light of the global crop losses, due to an unusually severe winter, this will redound to our benefit by helping to keep US food prices down. The Commies in the People's Republic of China can go hungry and afterwards turn on their masters in the Chinese Communist Party. Should be an interesting show. I'll stock up on popcorn now—again. 

 

Chief Joesph Mon, 04/02/2018 - 23:17 Permalink

It would have been a lot different had the U.S. subsidized its steel industry long ago.  Now America is crying in its beer mug over China doing it, and the U.S. has lost its industrial capacity and market.

Davidduke2000 Mon, 04/02/2018 - 23:24 Permalink

there is no over capacity, the entire world need new infrastructure, but the money is being stolen by bankers and wall street crooks and zionist bastards and their joos offsprings.. 

Aireannpure Mon, 04/02/2018 - 23:26 Permalink

Supply glut going on now 20-30 years. China has 2 new HUGE (worlds largest) open hearth iron mills. Pollution deluxe and yield beyond belief. Managed trade is the only way to keep Ameritard in business. I think no body really cares tho. 

Liberaldisdain Mon, 04/02/2018 - 23:45 Permalink

You can either provide high paying blue collar domestic jobs or provide welfare.

A large percentage of the population never will be able to.do.anything else no matter what the feds throw at them.

 

TeraByte Tue, 04/03/2018 - 02:27 Permalink

I love this comic opera.In the opening scene there is a mutual globalist self destruction staged. China´s state subventioned steel industry´s overcapacity, which equals to the entire EU´s production, meets import duties and China swaps from $ to renminbi when purchasing oil .