In a decisive move to protect its domestic aluminum industry, the United States Department of Commerce has concluded a nearly yearlong investigation into illegal imports of aluminum extrusions.
This investigation has resulted in the imposition of substantial tariffs on imports from 14 countries, marking a significant step in the ongoing battle against foreign dumping violations.
The Department of Commerce found that producers from China, Colombia, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates, and Vietnam engaged in the sale of aluminum extrusions at prices below fair market value, in clear violation of international trade rules. Consequently, the U.S. has introduced antidumping duties ranging from 2.02% to a staggering 376.85%. Additionally, countervailing duties, which address the unfair advantages conferred by government subsidies, range from 1.44% to 168.81%.
This investigation was initiated following a trade case filed in October 2023 by the U.S. Aluminum Extruders Coalition (USAEC) in collaboration with the United Steelworkers union (USW). Coalition leaders emphasized the critical nature of the situation, stating that the U.S. aluminum industry was in a “fight for [its] very existence.” The growing market share of foreign aluminum extruders not only threatened local businesses but also posed a risk to American jobs, with AEC officials citing evidence that foreign producers had captured an increasing portion of the U.S. market.
Jeff Henderson, president of the AEC, underscored the solidarity within the industry, likening the current struggle to past battles faced by American manufacturers against unfair trade practices, particularly those involving China. Henderson remarked, “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.”
The urgency of the matter is further highlighted by recent statistics from the AEC, which reported a decline in U.S. market share for aluminum extrusions from 80% to 75% following the revocation of previous tariffs in 2022. This seemingly small percentage equates to approximately 300 million pounds of extrusions, a loss comparable to the output of eight extrusion plants and corresponding to the potential loss of 2,000 American jobs.
In light of the determinations made by the Department of Commerce, officials from the AEC and USW have articulated their gratitude for the thorough investigation conducted over the past year. Robert DeFrancesco, trade counsel to the petitioners, stated, “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.” Looking ahead, the U.S. industry awaits further relief when the U.S. International Trade Commission issues its final ruling in November 2024.
While foreign producers brace for the impact of hefty duties, USAEC officials are also anticipating the outcomes of an administrative review process in the coming year, which will provide critical insights into the final assessment rates of duties. It is crucial to note that while the rates set today will determine cash deposit requirements, the final liability could rise significantly following this review, potentially imposing retroactive fees on U.S. importers.
In summary, the U.S. Department of Commerce’s recent measures signal a robust commitment to safeguarding American industry from unfair trade practices and ensuring a competitive marketplace for domestic aluminum producers. This development not only bolsters the local economy but also reaffirms the importance of fair trade practices on a global scale. As the situation unfolds, stakeholders will closely monitor the implications of these tariffs in shaping the future of the U.S. aluminum industry.
Source:USGlass with additional information added by GlassBalkan
