Global Geopolitical Series: U.S. initiates AD/CVD investigations on Steel Propane cylinders from China, Taiwan, and Thailand

Yesterday, the U.S. Commerce Department said in a statement that it is initiating based on complaints that the exporters of propane cylinders from China, Taiwan, and Thailand are dumping products at a much lower rate and Chinese exporters are receiving countervailing subsidies. The investigations were initiated based on petitions filed by Worthington Industries (Columbus, OH) and Manchester Tank & Equipment Co. (Franklin, TN) on May 22, 2018. The continued actions taken up the Commerce Department suggests that the Trump administration would use all the tools in the toolbox to counter United States’ massive trade deficit with rest of the world. Seeing the response from the U.S. Commerce Department, the local companies are piling up petitions.

According to the statement, the department, the alleged dumping margins are 55.41 to 108.60 percent (China), 27.19 to 66.20 percent (Taiwan), and 47.67 to 122.48 percent (Thailand). The petitioners complained that Chinese exporters have been receiving benefits of 18 subsidy programs.

According to the department’s calculation, imports of steel propane cylinders from China, Taiwan, and Thailand were valued at an estimated $89.8 million, $10.1 million, and $14.1 million, respectively.

The Commerce Department has initiated 118 AD/CVD investigations under Trump administration, which is 59 percent more than under the Obama administration.