China's Commerce Ministry sets anti-dumping tax rates on polyoxymethylene from US, EU, Taiwan and Japan
China's Commerce Ministry on Thursday announced a decision on corporate tax rate for enterprises related to anti-dumping measures on imported polyoxymethylene from the United States (US), the European Union (EU), Taiwan and Japan, Reuters reported.
Key quotes
After review, daicel corporation shall be taxed of the 35.5% anti-dumping duty rate.
Daicel HPP Taiwan Co., Ltd. shall be taxed the 3.8% anti-dumping duty rate.
Copolymerized polyoxymethylene exported to China mainland under polyplastics Co., Ltd. shall be subject to the 35.5% anti-dumping duty rate.
Copolymerized polyoxymethylene exported to China mainland under polyplastics Taiwan Co., Ltd. shall be subject to the 32.6% anti-dumping duty rate.
The taxes take effect from August 21.
Market reaction
At the time of writing, the AUD/USD is trading 0.17% lower on the day to trade at 0.7112.
Tariffs FAQs
Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.
There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.
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