Essay on U.s. Steelmakers Ready China Complaints

1081 Words Oct 7th, 2016 5 Pages
The title of this article is: “U.S. Steelmakers Ready China Complaints.” This article, written by Wall Street Journal reporter John W. Miller, discusses the product or commodity of steel. It focuses on the supply and trade of Chinese steel. The price of steel, however, is also discussed. The price for China to trade and import steel to the United States has increased drastically over the past year due to high tariffs. The world’s largest steel-maker is the Luxembourg-based ArcelorMittal, which runs large steel mills in both Alabama and Indiana. Its spokesperson Bill Steers claims these tariffs “helped to restore balance to U.S. steel markets.” In order to avoid these high tariff rates, China is suspected of routing its metal shipments through Vietnam to avoid U.S. import tariffs. The Chinese steel is suspected of being sent to Vietnam where it is modified, in some cases with zinc for corrosion-resistance, and then sent to the United States. The U.S. tariff rate for Vietnam is significantly lower than the U.S. tariff rate for China. A similar instance has happened recently, as China Zhongwang Holdings Ltd., one of the largest U.S. aluminum producers, is believed to have shipped its aluminum through Mexico and transformed the metal at a New Jersey plant to avoid the high U.S. import tariffs. U.S. steel producers, including U.S. Steel Corp., Nucor Corp., AK Steel Holding Corp. and Arcelor Mittal, have filed a complaint with the Commerce Department in order to prevent future…

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