PRELIMINARY ANTI-DUMPING DUTIES IMPOSED ON TIN-PLATED STEEL IMPORTS FROM CANADA, GERMANY, AND CHINA
WASHINGTON, Aug 17 (Reuters) – The U.S. Commerce Department has announced that it will set preliminary anti-dumping duties on tin-plated steel imports from Canada, Germany, and China. This move is intended to protect domestic steelmakers, but it has raised concerns about higher prices for cans and the products they contain.
According to the department, it plans to propose preliminary anti-dumping duties of 122.5% on tin mill steel imported from China, 7.02% on imports from Germany, and 5.29% on imports from Canada. A formal Federal Register notice is expected to be issued later on Thursday.
The steel in question is commonly used in the production of cans for food, paint, aerosol products, and other containers. However, no duties will be imposed on imports from Britain, the Netherlands, South Korea, Taiwan, and Turkey, as stated by the Commerce Department.
The decision comes after a petition from Cleveland-Cliffs (CLF.N), a U.S. steelmaker, alleging foreign dumping in the tin-plate sector. The tin-plate sector has experienced plant closures in recent years due to foreign competition.
In June, the Commerce Department already imposed preliminary anti-subsidy duties on tin mill imports from China’s largest steelmaker, Baoshan Iron and Steel Co (600019.SS), as well as other Chinese producers under a separate investigation.
Interestingly, the other seven countries mentioned in Thursday’s decision were not subjected to anti-subsidy investigations. This has raised concerns among trade groups and members of Congress, who argue that the new import duties will lead to higher costs for domestic can manufacturing, thereby increasing material costs and food prices.
The Can Manufacturers Institute, a trade group, has stated that U.S. steelmakers currently produce less than half of the necessary tinplate for domestic can manufacturing. Therefore, the new duties may result in higher material costs, which could contribute to inflation levels that are already elevated.
Additionally, a bipartisan letter from members of Congress in June warned that high anti-dumping duties could benefit Chinese producers of canned goods, potentially increasing canned food imports from China.
This decision by the U.S. Commerce Department will undoubtedly have significant implications for the tin-plated steel industry and its consumers. The final determination on these duties is expected to be made at a later date.
Reporting by David Lawder and Susan Heavey; Editing by Chizu Nomiyama