U.S. HIKES DUTIES ON CHINESE STEEL TO MORE THAN 500%

A trade spat between the U.S. and China boiled over on Wednesday, with Beijing demanding the removal of a new 500% duty on some of its steel products.

The escalation follows a ruling by the U.S. Department of Commerce on Tuesday that dramatically increases duties on Chinese cold-rolled steel, which is used to make appliances, cars and electric motors.

"China is extremely dissatisfied with this decision," the Ministry of Commerce said in a statement. "China urges the U.S. to strictly abide by World Trade Organization guidelines and correct its mistake as quickly as possible."

Trade tensions between the U.S. and China have risen considerably this year -- especially over steel. Last month, U.S. Steel accused dozens of Chinese producers of breaking trade rules, and asked the U.S. International Trade Commission to investigate. China produces half of the world's steel, more than the U.S., European Union, Russia and Japan combined.