It seems that the U.S. administration has finally decided to respond to similar measures taken by China, such as imposing extra duties on U.S. made cars.

Another episode of the trade war between the United States and China aired yesterday after the U.S. Commerce Department announced that it has set new duties on steel wheels imported from China.

The Department said that Chinese manufacturers, who last year exported over US$84.2 million worth of steel wheels in the U.S., are selling them 44.96 to 193.45 percent (!) “below fair value”.

This is made possible by Chinese government’s subsidies to local companies that range between 25.66 to 38.32 percent of their value.

Many U.S. companies have made petitions against Chinese imports claiming that huge government subsidies eliminate free market competition.

Steel wheels are just the beginning: solar panels are the next items imported from China that will be scrutinized by the Commerce Department, followed by galvanized steel wire, optical brightening agents and steel sinks.

Story References: Yahoo News