Global Geopolitical Series: U.S. penalizes China after self-initiated investigation on imports of Aluminum sheet

In a historic move, the U.S. Commerce Department concluded its self-initiated investigation into imports Alloy Aluminum sheets and slapped additional duties on that product from China. Yesterday, the Commerce Department concluded its final investigations into imports of the above-mentioned product from China and it has found that the exporters are dumping the product in the United States and selling the product at a much lower rate to the U.S. customers compared to the fair value. According to the statement released, Chinese exporters are dumping products at a margin of 49.85 to 59.72 percent. In addition to that, the department has found that exporters from China and India are receiving countervailing subsidies at rates ranging from 46.48 to 116.49 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 preliminary rates.

This is the first self-initiated investigation since 1985 and was initiated by the Enforcement and Compliance division of the Commerce Department’s International Trade Administration under the authority granted to the Secretary in the Tariff Act of 1930.

According to the department’s calculations, the imports of welded pipes from China were valued at an estimated $900 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 245 percent more than the previous administration.