US hits China with additional duties on US$4.4b in cabinets

US hits China with additional duties on US$4.4b in cabinets

China shipping
File photo of a truck passing by China Shipping containers at the Port of Los Angeles. (Mark RALSTON/AFP)

WASHINGTON: The US trade conflict with China may not have spared the kitchen sink, or even kitchen cabinets, as Washington on Thursday (Oct 3) announced another round of steep tariffs.

About US$4.4 billion of wooden cabinets and vanities imported from China will face additional duties because they are being dumped on the American market at less than fair value, the Commerce Department said.

Chinese exporters will face tariffs of 28.7 per cent to 251.6 per cent to level the playing field, Commerce said in its preliminary decision.

The imported cabinets already faced tariffs on Aug 8 after Commerce determined the Chinese manufacturers received government subsidies.

READ: China urges 'calm and rational' resolution to US-Sino trade war

Commentary: Why are we playing chicken with global recession risks?

The latest announcement is one in series of cases Commerce has pursued against many product lines, usually at the request of American companies claiming to be hurt by imports from China or other trading partners.

But it is separate from the broader trade dispute in which President Donald Trump plans to impose tough taxes on nearly all imports from China.

Based on the dumping rates, US customs agents will begin collecting duties from importers on the cabinets.

However, the funds would be returned if the department reverses its decision or if the independent US International Trade Commission finds the subsidies did not harm US industry.

READ: US services sector activity hits three-year low as labour market remains solid

The cabinet case was launched in March by a trade group called the American Kitchen Cabinet Alliance, and impacts companies including Dalian Meisen Woodworking, Ancientree Cabinet and Rizhao Foremost Woodwork Manufacturing.

Source: AFP/de

Bookmark