Chinese Steel Pipe Producers Violate Trade Law

The Washington Post reported that the U.S. Commerce Department has issued its premliminary findings that Chinese steel pipe producers are in violation of trade law because of received subsidies from the Chinese governement.

The subsidies from the government allowed the Chinese steel pipe producers to triple its imports into the U.S. market, dominating the U.S. steel producers within its own market. The United Steelworkers Union and six companies filed a compliant stating the Chinese producers received a discount on the raw materials and government-funded loans.

The U.S. Commerce Department ruled to impose a 11 to 31 percent tariff on all imported Chinese steel pipes.

The ruling “means that from this day on that U.S. producers won’t have to compete against the government of China,” said Roger Schagrin, an attorney who represented the United Steelworkers and four U.S. makers of steel pipe in the case. “They can have a chance to recover.”

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