20100831 aluminum china 18
Chinese worker moves aluminum pipes at the Qinghai Guoxin Aluminium Industry Incorporated Company workshop in Xining of Qinghai Province, China. - 


BILL RADKE: The U.S. government is expected to announce new tariffs on Chinese aluminum imports. The U.S. is blaming China for illegally aiding its aluminum industry at the expense of American manufacturers.

More on that now from Marketplace's China bureau chief Rob Schmitz.

ROB SCHMITZ: The Commerce Department says more than half a billion dollars worth of aluminum siding, door frames, and bicycles have been illegally subsidized by the Chinese government. The U.S. says China helped it own companies with tax breaks -- as a result, the U.S. could make it harder for Chinese companies to sell aluminum in the states.

The decision could hurt not only Chinese firms, but also American companies that import aluminum products from China. That's a familiar story for U.S.-China Business Council's Robert Poole.

ROBERT POOLE: Protectionist-type of tariffs don't have the intended effect of creating employment for industries where the U.S. has already moved up the value curve.

Poole's group just released a report on how the Obama administration placed tariffs on Chinese tires last year -- and how that backfired. The administration disagreed with the report, but according to the U.S.-China Business Council, instead of boosting American tire makers, the tariffs just meant more tires from South and Central America flooded the U.S. market.

A lawyer for China's aluminum industry says there aren't any plans to appeal today's decision.

In Shanghai, I'm Rob Schmitz for Marketplace.

Follow Rob Schmitz at @rob_schmitz