In an important change in U.S. trade policy towards China, the Commerce Department last week decided to impose duties on imports of certain types of paper from China, to offset Chinese subsidies. The Commerce fact sheet says,
Commerce preliminarily determined that Chinese producers/exporters have received net countervailable subsidies ranging from 10.90 to 20.35 percent. As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection to suspend liquidation of entries of subject merchandise and to collect a cash deposit or bond based on these preliminary rates.
The implications extend beyond the paper industry. Steven R. Wiseman reported for the New York Times: In Big Shift, U.S. Imposes Tariffs on Chinese Paper (March 31).
Jonathan Dingel has been following this over at Trade Diversion: China hit by US CVDs (March 30), and been asking good questions Where are Commerce's Chinese subsidy calculations? (April 2).
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