Chinese steel faces stiff US tariffs based on subsidies received

New York

IMPORTS of some corrosive-resistant steel from China may be taxed as much as 236 per cent based on the level of subsidies they receive, according to a preliminary finding by the US Department of Commerce.

The department found five Chinese exporters including Angang Group Hong Kong Co and Baoshan Iron & Steel Co got subsidies of that amount, it said in an e-mailed statement. US Customs and Border Protection will be instructed to require cash deposits based on the subsidy rates. A Baosteel Group Corp spokesman said the company's operations are based on market forces.

The preliminary finding is the first decision in three sets of trade cases that US steel producers have filed this year, as a glut of output from foreign producers led by China has pushed down prices to nine-year lows and …