Baku. 23 May. REPORT.AZ/ China plans to retaliate on the US decision to a sharp increase in import tariffs on steel from China. Report informs referring to the vestifinance.ru, now the Chinese commodities market is experiencing a serious crash.
The cost of iron ore on Monday fell by 7% in the past month fall has reached 30%. Reinforcing steel in the past month fell by 32%, and now prices have dropped by 5%. Experts predict that the decline in prices of these commodities will increase.
Experts have long warned China that overcapacity sooner or later will lead to a strong fall in prices and the impact on the entire industry. But the prices are kept at levels that manufacturers still make a profit.
Once the amount of the fee up to 522%, the supply of steel from China to the United States in fact were blocked.
Notably, the US Department of Commerce has dramatically increased the size of import tariffs on Chinese steel, thereby satisfying a lawsuit filed in July 2015 by the largest steel producers - US Steel, AK Steel Corp, ArcelorMittal USA, Nucor Corp and Steel Dynamics Inc.
After the US decision to the Chinese authorities began to think of retaliatory measures that could have a negative impact on the US stock market, thereby forcing investors to think about the redistribution of capital. In addition, China and the US are struggling to prevent the fall of the stock market, which is considered an indicator of "wealth creation" in the national economy. It is not clear what will follow the introduction of protective duties on the part of the United States, but, quite possibly, the world was on the threshold of a new trade war.