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Dumping investigations started by Australia this year into Chinese products such as tubes, aluminium products and steel roofing and wall panels are hurting the construction industry, said Paul Zalai, director of the industry body representing importers, the Freight & Trade Alliance.
"Australian producers are seeking dumping duties of up to 90 per cent," Mr Zalai said. "This is on top of the existing massive duties applying to Chinese steel and aluminium products."
Importers hit with dumping duties consequently needed to find products from new non-Chinese suppliers, Mr Zalai said.
"The looming threat of dumping duties has a chilling effect on Chinese-Australian trade," said Russell Wiese, a partner at Hunt & Hunt Lawyers.
Some groups were also using the trade war to threaten competitors with increased tariffs, Mr Wiese said, adding that he was aware of two Australian companies using Chinese-made goods that had been threatened with dumping investigations by rivals that had lost tenders.
"This sort of behaviour is likely to decrease the willingness of importers to use Chinese goods to compete against Australian manufacturers," he said.