Australia quietly introduces tariffs on Chinese steel
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The Australian government has quietly imposed tariffs on some Chinese steel products, risking retaliation from the emerging superpower.

The Department of Industry has announced a 10 percent tariff on ceiling frames imported from China.

This decision comes after the Anti-Dumping Commission’s investigation revealed that Chinese imports were undercutting domestic producers and benefiting from government subsidies.

Australia has imposed tariffs on some Chinese steel imports. (AP Photo/Robert F. Bukaty)(AP)
Last month, Treasurer Jim Chalmers requested the Productivity Commission carry out an urgent inquiry into the effect of structural steel imports on the local market.

Local steel fabricators, primarily small to medium-sized enterprises, reported that the influx of inexpensive imports was making it difficult for them to compete.

Industry Minister Tim Ayres emphasized the government’s commitment to supporting Australian businesses while promoting equitable international trade.

“Australia’s economic success is tied to an open, rules-based trading system, with one in four jobs reliant on trade,” he stated.

“The government will defend Australian farmers, manufacturers, and workers whenever the playing field is not level,” Ayres added.

“This includes applying measures at the border to address unfair imports.”

China’s sluggish construction sector has led to a glut of steel made there, triggering a flood of shipments to overseas markets.

According to Commonwealth Bank of Australia analysis, Chinese crude steel output fell by 4.4 per cent last year – marking the largest annual fall since the data began in 1990.

While heavy US tariffs have deterred Chinese steel importers, other markets, including Australia, became export targets.

The move by Australia was in addition to temporary tariffs ranging form 35 per cent and 113 per cent on steel products, which started last December.

Dumping, defined by the World Trade Organisation, is a form of price discrimination, involving selling a product in the importing country at less than the price in the market where it is made.

The latest tariffs come after warmer trade relations between Canberra and Beijing since the 2022 election victory of the Albanese government.

It followed years of bitter trade disputes under the former Morrison government when bilateral relations chilled over suspicions of Chinese interference in Australia increased.

China also hit out at Australia’s call for an inquiry into the origins of the COVID-19 pandemic and allegations it was seeking to intimidate members of the Chinese-Australian community.

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