Mysteel Global: From Thursday of this week, those few Chinese buyers of steel and aluminum-related products imported from the United States will have to pay more for them, or source them from other countries.
This follows the decision announced on 4 April from the Office of the Customs Tariff Commission under the China’s State Council, Ministry of Finance, confirming that a 34% additional tariff would be imposed on imported U.S. goods, in direct response to sweeping new trade measures unveiled by US President Donald Trump earlier this week.
According to the official release seen by Mysteel Global, the new tariff approved by the State Council is grounded in China’s relevant laws on tariffs, customs, and foreign trade, and in accordance with the basic principles of international law. The tariff will apply to all U.S. goods shipped to China starting from 12:01 p.m. on 10 April.
However, an exemption clause was also included: goods that departed the US before 12:01 pm on 10 April and arrive in China before 24:00 on 13 May will not be subject to the additional levy.
During the first two months of this year, according to data from China’s General Administration of Customs (GACC), the country imported an average of about 2,000 tonnes/month of US-origin steel items – mostly sheet and special steel – and about 13,000 t/m of aluminum goods – mostly ali scrap and aluminium hydroxide, a fire retardant, Mysteel Global notes.
The higher duty on these products going forward is unlikely to generate much additional revenue for China’s finance ministry or inconvenience many Chinese buyers but Beijing’s purpose is clear and Chinese importers of other products such as agricultural commodities will be badly affected, as widely reported.
Beijing’s countermeasure follows Trump’s 2 April announcement of sweeping new tariffs targeting nearly all of the United States’ trading partners, including a 34% so-called “reciprocal tariff” on Chinese imports.
In a strongly worded statement, Beijing condemned the US move, saying it violated international trade rules, seriously undermined China’s legitimate and lawful rights, and constituted a typical act of unilateral bullying. China warned that such actions not only hurt US interests but also pose risks to global economic development and threaten the stability of industrial and supply chains worldwide.
Beijing urged Washington to immediately withdraw its unilateral tariff measures and resolve trade disputes through consultation based on equality, mutual respect, and reciprocity, the office stated in the 4 April announcement.
The intensifying tariff conflict has rattled global markets, with investors increasingly concerned about the risk of recession. The uncertainty has weighed heavily on commodity derivatives trading across sectors, particularly non-ferrous metals, ferrous products, and energy.
Reflecting the market jitters, the most-traded silver, nickel, tin, aluminum, and copper contracts on the Shanghai Futures Exchange (SHFE) all hit their daily limit-down at the open on April 7. The SHFE didn’t open over 4-6 April due to the country’s Qingming Festival.
By the close of the morning session, the most-traded October rebar contract had dropped by 2.41% to settle at Yuan 3,157/tonne ($431.9/t), underscoring the depth of market unease.
Note: This article has been written in accordance with a content exchange agreement between MySteel Global and BigMint.
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