Global Geopolitical Series: U.S. initiates AD & CVD investigations on metal file cabinets from China

Yesterday, the U.S. Commerce Department announced that it is initiating an anti-dumping (AD) and countervailing duty (CVD) investigations into imports of metal file cabinets from China to determine whether vertical metal file cabinets from China are being dumped in the United States and to determine if producers in China are receiving unfair subsidies.

The investigations were initiated based on petitions filed by Hirsh Industries LLC (West Des Moines, IA), which alleged that China is dumping the product at an alleged dumping margins range from 121.75 to 198.50 percent. The petition also alleges the existence of 20 subsidy programs including preferential lending programs, export subsidy programs, tax programs, grant programs, and various programs for the provision of goods or services for less than adequate remuneration.

The preliminary determination would be made before the end of July and the final determination in early October.

According to the department’s calculations, the imports of metal file cabinets from China were valued at an estimated $45.2 million in 2018.

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 215 percent more than the previous administration.

Recently, as the trade talks failed to yield results and both sides once again resorting to tariff war. Earlier this month, President Trump hiked the tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent, and China responded by imposing tariffs on $60 billion worth U.S. goods.