Global Geopolitical Series: U.S. imposes heavy duties on rubber bands from China

Earlier this week, the U.S. Commerce Department concluded its final investigations into imports of rubber bands from China and it has found that exporters are dumping the product in the United States at a margin of 27.77 percent. In addition to that, the investigation has found that exporters are receiving countervailing subsidies at a rate of 125.77 percent.

As a result of the findings, the commerce department has asked the U.S. customs and border patrol (CBP) agency to collect cash deposits from importers of the item based on these final rates.

The investigation was initiated based on petitions filed by Alliance Rubber Company of Arizona.

According to the department’s calculations, the imports of rubber bands from China were valued at an estimated $4.9 million in 2017.

Under President Trump, the U.S. Commerce Department has significantly stepped up its investigations into foreign malpractices in trade and the number of investigations initiated is 242 percent more than the previous administration.