China, South Korea and Indonesia lose tariff fight

A landmark decision was handed down today by the U.S. Commerce Department adding punitive tariffs on coated paper imports into the U.S. by China, South Korea and Indonesia. Below are the schedules of duties.

• Chinese coated papers to add 10.9% to 20.3% tariff
• Indonesia coated papers to add 21.24% tariff
• S. Korea coated papers to add 1.76% tariff with some companies exempted from the tax

This ruling reverses decades of policy by the U.S. Commerce department who previously only add anti dumping tariffs. This ruling is thought to pave the way for other industries and companies to bring similar actions to protect USA manufacturing from cheaper Asian imports. As well, as of lately with the new Congress in power increasing loud rumbles have increased about penalizing China for its trading practices, unfair subsidies and a weak currency. It appears the tide is turning.

Unfounded Concerns about China's Debt holdings.

Some voices of Wall Street reacted negatively to today's ruling sending the Dow Jones down a fraction. Concerns have been voiced about China's reaction given that they are the USA's second largest trading partner, next to Canada, and with the amount of U.S. Bonds the Chinese hold. Most of these concerns will most likely be shrugged off. For one, China will not stop exporting to the USA, so no worries about the trading partner status. Second China holds $350 +/- billion in U.S. government debt. While this sounds like a lot, the debt market is a $4 trillion a day market. $350 billion dollars can easily wash through this system in a matter of a few days. No worries on that front either.