These are only the results of the preliminary enquiry, a final determination in the countervailing duty is to be announced on August 30 2018.
In a significant development that adds to the growing numbers of reasons behind the Trump Administration’s reasons for the trade conflict with China, the U.S. Commerce Department said, as per the preliminary results of an enquiry, common alloy aluminum sheet imported from China are being subsidized. As a result it has set countervailing duties of up to 113%.
As per the department’s statement, in 2016, imports of common alloy aluminum sheet from China were valued at an estimated $600 million.
A final determination in the countervailing duty investigation is likely to be announced on August 30, said the Commerce Department.
The decision has been welcomed by the Aluminum Association, a U.S. trade group.
“This is an important first step to begin restoring a level playing field for U.S. aluminum sheet production,” said Heidi Brock, president of the Aluminum Association in a statement.
These preliminary findings comes in the wake of the Trump Administration threatening to pile on stiff tariffs on Chinese goods worth $150 billion in order to force the Communist nation to change its industrial and trade policies.
China routinely dumps subsidized products in other countries.
The U.S. Commerce department stated, it calculated a preliminary subsidy rate of 113.30% for Chalco Ruimin Co Ltd and Chalco-SWA Cold Rolling Co Ltd, 34.99% for Henan Mingtai Industrial Co Ltd and Zhengzhou Mingtai Industry Co and 31.20% for Yong Jie New Material Co Ltd.
The preliminary subsidy rate for all-other Chinese producers and exporters is 33.10%, said the U.S. Commerce department.