In the late? ?1990s,? ?Japan was accused of dumping steel on the U.S.? ?market.?

Question

In the late? ?1990s,? ?Japan was accused of dumping steel on the U.S.? ?market.? ?This means that Japanese steel producers were suspected of selling their steel in the U.S.? ?at prices below their costs of production,? ?although what? "?costs of production?" ?exactly means is not particularly clear.? ?In any case,? ?some people in the U.S.? ?were unhappy about this,? ?while others clearly benefited.? ?Give examples of people who would be angry about Japanese steel dumping and people who would greatly benefit from this dumping.

Explanation / Answer

The Clinton Administration moved closer today to imposing punitive tariffs against Japan, affirming that producers there have illegally priced steel in United States markets. Tariffs of up to 67 percent on hot-rolled carbon steel would effectively make the widely used product from Japan more expensive. Already, there are signs of import reductions in anticipation of tariffs. The Federal Government is considering similar tariffs against Brazil and Russia. A decision on Brazil has been delayed until July 6. A ruling on Russia is due on June 10, but that country may be able to avoid tariffs if its agreement to curb steel shipments to the United States is ratified by both countries. The Commerce Department ruled in February that it had evidence that Japan, Russia and Brazil illegally ''dumped'' steel -- sold it in United States markets at prices below production costs or home-market prices. Today, the department concluded that Japan did indeed dump steel. Tariffs will be imposed if the United States International Trade Commission, an independent fact-finding body, concludes that the dumping has injured or threatens to hurt domestic producers. The commission has already found evidence of such a threat to the United States industry and is to make a final ruling in early June.

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