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Apr. 19 (NBD) -- U.S. Department of Commerce will initiate antidumping duty (AD) and countervailing duty (CVD) investigations into the steel wheels from China, stirring trade tensions between two countries.

According to the announcement, the two investigations are based on petitions filed by Accuride Corporation and Maxion Wheels Akron LLC on 27 March, 2018. The alleged dumping margins of the products range from 12.1 to 231.7 percent and there are 56 subsidy programs alleged.

U.S. Department of Commerce will determine whether Chinese producers of certain wheels are being dumped in the U.S. or receiving unfair government subsidies. 

The United States International Trade Commission (USITC) will also investigate whether the U.S. industry was damaged by China's steel wheel imports. The USITC will make its preliminary determinations around 11 May. 

Investigations will continue if the USITC preliminarily determines that there is injury or threat of injury. The preliminary CVD determination and preliminary AD determination are scheduled for 20 June and 4 September respectively.

The move will fuel trade tensions between China and the U.S., Bai Ming, deputy director of the International Market Research Department at Chinese Academy of International Trade and Economic Cooperation, MOC, told NBD. 

If the U.S. determines that the imported Chinese steel wheels cause injury to the U.S. industry, the products could be charged a tariff of more than 200 percent, added Bai.

The new investigations are believed to be supplements to the previous section 232 investigations.

Bai noted that all the investigations can be regarded as a combined strike against China, which hits both raw materials and primary products.

On 16 February, U.S. Department of Commerce published a report of section 232 investigation, saying that the imported steel and aluminum products has severely damaged the U.S. industry and threatened the national security. 

Later on 1 March, U.S. President Donald Trump announced that the country will impose tariffs 25 percent on steel and 10 percent on aluminum. 

Another announcement released by the U.S. Department of Commerce stated that Chinese producers of the general aluminum alloy plates received unfair subsidy ranging from 31.2 percent to 113.3 percent and the customs will impose a corresponding deposit on the certain products imported from China.

Australian agency also made an announcement that it will initiate the AD and CVD investigations into the railway wheels made by China. 

Wang Guoqing, director of Research Center at Lange Steel, said to NBD that with escalation of trade tensions, the U.S. is likely to counterbalance China by taking trade protectionist measures.

The steel wheels, as downstream products of steel, are one of the major parts of the automobile components. The new move may push up the cost of automobile imports and negatively affect the automobile industry, Wang added.

In 2017, U.S. imports of certain steel wheels from China were valued at an estimated 388 million U.S. dollars.  

With regard to the reason for Australia's new investigation, Wang pointed out that Australia may seek for the further tariff exemption for the imported steel and aluminum from the United States.

Email: zhanglingxiao@nbd.com.cn