China puts heavy 75% tax on US imports of vital engineering plastic
The levy, which also hits firms from the EU, Japan and Taiwan came despite a 90-day truce in the trade war between the two countries
China will impose a 75 per cent anti-dumping tax on American imports of an important engineering plastic – a move that underscores the ongoing trade tensions between the two countries.
The levies on polyformaldehyde copolymers were made in the wake of a 90-day tariff truce between the United States and China, which reduced most tariffs, but the imposition of these duties signalled the possibility of further escalation.
Imports of the same plastic from the European Union, Taiwan and Japan will face duties between 32.6 and 35.5 per cent.
The Ministry of Commerce said on Sunday that an investigation had concluded that “imports of polyformaldehyde copolymer originating in the United States, the European Union, Taiwan, and Japan were being dumped on the Chinese market, causing substantial damage to the domestic industry, and that there was a causal relationship between the dumping and the material injury”.
The plastic targeted is a lightweight, durable alternative to metals such as copper and zinc and is widely used in car parts, electronics, consumer goods, construction and pharmaceutical materials.
The announcement comes despite a deal between the US and China last Monday to lower most of the tariffs announced last month.