Global Geopolitical Series: U.S. Commerce announces duties on Chinese steel racks to counter malpractice

In a continuation of the toughened stance against both Allies and adversaries, the U.S.  Commerce Department imposed duties on steel racks and parts from China. The United States, in 2017, imported $200 million worth of the above-mentioned rack and parts, according to data from the U.S. Commerce Department.

The investigation was initiated petition filed by Coalition for Fair Rack Imports, whose members are Bulldog Rack Company (Weirton, WV), Hannibal Industries, Inc. (Los Angeles, CA), Husky Rack and Wire (Denver, NC), Ridg-U-Rak, Inc. (North East, PA), SpaceRak (Marysville, MI), Speedrack Products Group, Ltd. (Sparta, MI), Steel King Industries, Inc. (Stevens Point, WI), Tri-Boro Shelving & Partition Corp. (Farmville, VA), and UNARCO Material Handling, Inc. (Springfield, TN).

The department has found in its investigation that exporters from China have sold the steel wheels at less than fair value in the United States at rates of 18.06 to 144.50 percent. In addition to that, the exporters have received countervailable subsidies at rates from 1.50 to 102.23 percent in the form of preferential loan and interest rate programs, export credit programs, income tax and other direct subsidy programs, indirect tax programs, grant programs, and less than adequate remuneration programs.

The Commerce Department has instructed U.S. Customs and Border Protection to collect cash payments from importers based on these rates.

Under President Trump, the Commerce Department is practicing strict enforcement of U.S. trade law, as the above-mentioned investigations have increased by 219 percent, compared to his predecessor.