In a decisive move to support its faltering steel mills, the Chilean government has imposed temporary anti-dumping tariffs on Chinese steel products widely used in the country's mining industry. According to a decree published in the national gazette this past Saturday, steel balls will face a tariff of 33.5%, and the bars used to produce them will be subjected to a 24.9% tariff over the next six months.
The measure comes as an influx of low-priced imports from China, exacerbated by an economic slowdown in that country, has put significant pressure on steel producers throughout Latin America. Earlier this month, Chilean lawmakers passed eight resolutions urging President Gabriel Boric to take action to defend the loss-making local industry. The Economy Minister also indicated that anti-dumping measures were under consideration.
The decision to implement these tariffs marks a significant test of Chile's free-trade strategy and may provoke displeasure from China, which is the top buyer of Chilean copper. This action is part of broader efforts to preserve approximately 20,000 jobs in the Chilean steel industry, highlighting the tensions between safeguarding domestic industries and maintaining international trade relationships.
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