Trump administration self-initiates aluminum import investigations

The U.S. Commerce Department on Tuesday took the highly unusual step of self-initiating antidumping and countervailing duty investigations, in this case into imports of common alloy aluminum sheet from China.    The U.S. Commerce Department on Tuesday took the highly unusual step of self-initiating antidumping (AD) and countervailing duty (CVD) investigations, in this case into imports of common alloy aluminum sheet from China.
   U.S. antidumping and countervailing duty investigations are typically triggered by a company or industry group filing a petition alleging harm from imports, but that doesn’t have to be the case.
   Commerce has the authority under the 1930 Tariff Act to self-initiate antidumping and countervailing duty investigations when it sees fit. The last time that the department took this action, however, was more than 25 years ago. 
   “President Trump made it clear from day one that unfair trade practices will not be tolerated under this administration, and today we take one more step in fulfilling that promise,” Commerce Secretary Wilbur Ross said in a statement. “We are self-initiating the first trade case in over a quarter century, showing once again that we stand in constant vigilance in support of free, fair, and reciprocal trade.”
   Alloy aluminum sheet has a large variety of uses, such as building and construction, transportation, electrical applications and appliances, where its strength, relatively light weight, and resistance to corrosion are required. The U.S. aluminum industry exports about 2 billion pounds of common alloy sheet annually out of about 26 billion pounds that it produces for domestic demand. 
   The Commerce investigations are particularly focused on imports of this commodity with a thickness of 6.3 mm or less, but greater than 0.2 mm in coils or cut-to-length, regardless of width.
   Commerce estimates that in 2016 these imports from China were valued at $603.6 million.
   The Aluminum Association applauded the administration’s action to self-initiate these antidumping and countervailing duty investigations. Aluminum from China has been the subject of several intensive import investigations since Trump took office.
   “We are extremely grateful for the efforts and leadership of Secretary Ross in vigorously enforcing the U.S. trade laws,” Heidi Brock, the group’s president and CEO, said in a statement. “The Aluminum Association and its members seek to help ensure that common alloy sheet from China entering the United States is fairly traded.”
   The last time the department self-initiated a countervailing duty investigation was in 1991 for softwood lumber from Canada, while the last self-initiated antidumping duty investigation took place in 1985 with semiconductors from Japan.
   Commerce said it self-initiated the antidumping and countervailing duty investigations in Chinese alloy aluminum sheeting based on information that the product is being sold, or “dumped,” in the U.S. market at less than fair market value and receives considerable countervailable subsidies from the Chinese government to encourage its export. The department noted that it also has evidence that these imports unduly harm U.S. producers. 
   “The AD and CVD investigations will proceed like any other trade remedy investigation,” Commerce said.
   During the Commerce investigations, the U.S. International Trade Commission (ITC) will conduct its own investigations into whether U.S. industry is harmed by these imports. The ITC is expected to make its preliminary determinations by Jan. 16, 2018. If the ITC preliminarily determines that there is injury or threat of injury, Commerce’s investigations will continue, with a preliminary countervailing duty determination by February 2018 and a preliminary antidumping determination by April 2018, unless these deadlines are extended.
   If Commerce preliminarily determines that dumping or unfair subsidization is occurring, then it will instruct Customs and Border Protection (CBP) to start collecting cash deposits from all U.S. companies importing this alloy aluminum sheet from China.
   Final determinations by Commerce in these cases are scheduled for April 2018 for the countervailing duty investigation, and July 2018 for the antidumping investigation. If either Commerce finds that products are not being dumped or unfairly subsidized, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will end and no duties will be applied.
   The initiation of two latest antidumping and countervailing duty investigations brings the year-to-date total under the Trump administration’s watch to 79 – a 65 percent increase from 48 in the previous year. Commerce also currently maintains 412 antidumping and countervailing duty orders.