Global Geopolitical Series: United States slaps large duties on propane cylinders from China

This week, the U.S. Commerce Department concluded its preliminary investigations into imports of steel propane cylinders from China and it has found that exporters are receiving countervailing subsidies from the Chinese government and selling the product at a much lower rate to the United States. According to the statement released, Chinese exporters receiving countervailing subsidies to the tune of 42.77-145.37 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.

The investigation was initiated based on petitions filed a group of companies; Worthington Industries (Columbus, OH) and Manchester Tank & Equipment Co. (Franklin, TN).

According to the department’s calculations, the imports of forged steel fittings from China were valued at an estimated $89.8 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.