MASSIVE TARIFFS IMPOSED ON FOREIGN ALUMINUM AS US FIGHTS DUMPING VIOLATIONS

The United States Department of Commerce announced the end of a nearly yearlong investigation into illegal imports of aluminum extrusions, issuing final determinations against 14 countries in an anti-dumping case.

According to the department’s findings, China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates and Vietnam sold dumped and subsidized aluminum extrusions into the U.S., violating international trade rules. As a result, antidumping duties have been imposed at rates ranging from 2.02% to 376.85%, along with countervailing duties ranging from 1.44% to 168.81%.

The investigation was prompted by a trade case filed in October 2023 by the U.S. Aluminum Extruders Coalition (USAEC), a coalition of 14 American extruders, and United Steelworkers union (USW), in which AEC officials said the domestic aluminum industry was in “a fight for [its] very existence.” According to USAEC officials, more than a dozen more American extruders submitted letters of support for the coalition’s effort. Foreign producers of aluminum extrusions gained a significant and increasing share of the U.S. market at the direct expense of the U.S. industry, officials for the Aluminum Extruders Council alleged.

“As it was with China over a dozen years ago, a courageous group of U.S. extruders has come forward to lead the industry in this ‘do or die’ battle,’” says AEC president Jeff Henderson.

In 2022, AEC reported that the share of the U.S. market for aluminum extrusions decreased from 80% to 75% after tariffs were revoked. Officials say this translates to 300 million pounds of extrusions, equivalent to eight extrusion plants and 2,000 jobs.

AEC and USW officials commended the Commerce Department for its work over the past year on the resulting investigations.

“These final determinations are another key step in remedying the harm caused by illegal dumping by foreign producers of aluminum extrusions, many of which have also benefited from unfair subsidies,” said Robert DeFrancesco, trade counsel to the petitioners. “The U.S. industry looks forward to relief from these unfairly traded imports when the U.S. International Trade Commission issues its final determination in November 2024.”

While many foreign extruders will be subject to significant duties, “the petitioners also look forward to the final assessment rates calculated in the Commerce department’s administrative review process a year from now,” says USAEC officials. Duty rates set cash deposit rates today; final duty liability will be determined through an administrative review by Commerce. Duties may increase later, in which case U.S. importers would retroactively owe additional duty amounts.