China to Impose 36 Percent Tariff on U.S.-Made Nylon in Ongoing Trade Dispute
Oct. 20 – The Ministry of Commerce has announced that it will be immediately collecting a 36 percent tariff on American-made nylon 6 or polycaprolactam in the latest development of the ongoing trade tussle between China and the United States.
The ministry said that the tariff will be collected as a security deposit and will be paid back should its final decision be reversed. Nylon 6 imported from the European Union, Russia and Taiwan will also be fined a similar tariff but at lower rates.
The decision is considered a preliminary anti-dumping measure after the ministry found imported nylon 6 to be adversely affecting the country’s domestic market reports Xinhua. Nylon 6 is a commonly used material for producing toothbrushes, socks, hosiery, knitted garments, threads, ropes, filaments, nets and tire cords.
The trade tussle between China and the United States began in September when Chinese-made tires where slapped a 35 percent tariff and China fired back by saying that it would increasing tariffs on American imports of chicken meat and car parts.
The latest development of the dispute comes as U.S. President Barack Obama is scheduled to visit China in November.
He Maochun, a professor of economics and diplomacy at Tsinghua University, told The New York Times that China had no choice but to combat American protectionist measures with its own. “We have learned our bad behavior from other countries,” he said. “China’s actions in this area will serve as a deterrence and warning to other nations.”