WASHINGTON, May 25 (Xinhua) -- The U.S. Commerce Department on Tuesday set final antidumping duties (AD) and countervailing duties (CVD) on imports of some 12.7 million dollars worth of potassium phosphate salts from China, a move that might escalate trade disputes between the two countries.

"Commerce determined that Chinese producers/exporters have sold certain potassium phosphate salts in the United States at 69.58 to 95.40 percent," said the department in a statement.

Moreover, the department also ruled that the Chinese producers/ exporters of certain potassium phosphate salts have received net countervailable subsidies of 109.11 percent ad valorem.

As a result of the final determination, the Commerce Department will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposits or bonds on imports of certain potassium phosphate salts from China based on the final AD and CVD rates.

The U.S. International Trade Commission (ITC) is scheduled to issue its final injury determination on or before July 15, 2010.

If the ITC makes affirmative final determinations that imports of certain potassium phosphate salts from China materially injure, or threaten material injury to, the domestic industry, Commerce will issue AD and CVD orders.

The protectionist moves by the Obama administration will ultimately hurt the U.S.-China trade relations, which are becoming more and more important due to the global financial crisis, economists warned.

Chinese Minister of Commerce Chen Deming last week called on world governments to remain alert to trade protectionism for the sake of a global recovery.

"There is still uncertainties and tough way ahead. As the world is going through an economic recovery, countries across the world need to make concerted efforts to stand against protectionism and support liberalization of trade and investment," Chen said.