Trade Cases

Currency Manipulation to Be Subject to Countervailing Duties
Written by Sandy Williams
February 5, 2020
A new regulation from the U.S. Department of Commerce allows currency manipulation by foreign governments to be considered a subsidy subject to countervailing duties.
“This Currency Rule is an important step in ensuring that unfair trade practices are properly remedied,” said Secretary of Commerce Wilbur Ross. “While successive administrations have balked at countervailing foreign currency subsidies, the Trump administration is taking action to level the playing field for American businesses and workers.”
A countervailable subsidy is defined by Commerce as a “financial contribution from a government or public entity that is specific and provides a benefit to a foreign producer or exporter.”
The new regulation identifies certain criteria that Commerce would use to determine if countervailing duties should be imposed in cases of currency under-valuation.
“In assessing whether there has been such government action, Commerce will not normally include monetary and related credit policy of an independent central bank or monetary authority,” said the Department. “Commerce will seek and generally defer to Treasury’s expertise in currency matters.”
Currently, Commerce maintains 515 antidumping and countervailing duty orders on a variety of products. During the Trump administration, 198 antidumping and countervailing duty investigations were initiated, up from 168 percent from the comparable period in the Obama administration.

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them

Breaking News: Commerce releases prelim anti-dumping duties in sweeping trade case targeting CORE imports
The US Commerce Department on Friday released preliminary anti-dumping margins in a trade case targeted imports of coated flat-rolled steel from 10 countries. Certain countries and mills were hammered while others were largely spared. Brazilian steelmaker CSN, for example, received a preliminary rate of 137.76%. Some Turkish mills – including Boreclik and ArcelorMittal Celik Ticaret – received no dumping margin at all.

CRU: Trump’s sweeping tariffs could derail the US met coal industry
Latest tariffs could lead to US metallurgical coal exporters (many already high-cost swing producers) being priced out of the market.

Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.

Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.