Secretary Wilbur Ross Assesses Aluminum Anti-dumping Duty Against China…

From the U.S. Dept. of Commerce – Today, Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the first antidumping duty (AD) trade case the Federal government has initiated since 1985. This historic self-initiated AD investigation concerns imports of common alloy aluminum sheet from China.

This investigation, and the companion countervailing duty investigation, was initiated by the Enforcement and Compliance division of the Commerce Department’s International Trade Administration under the authority granted to the Secretary in the Tariff Act of 1930, as amended. The CVD investigation reached a preliminary determination in February 2018 and is still being adjudicated.

“The Department of Commerce will do everything in its power to stop the flow of unfairly subsidized or dumped goods into U.S. markets,” said Secretary Ross. “We will continue to strictly enforce U.S. laws to defend American workers, industries, and communities from the scourge of unfair and unbalanced trade.”

In its preliminary finding, Commerce determined that exporters from China have sold common alloy aluminum sheet in the United States at 167.16 percent less than fair value.

As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of common alloy aluminum sheet from China based on these preliminary rates.

In 2017, imports of common alloy aluminum sheet from China were valued at an estimated $900 million.

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 118 new AD and CVD investigations – this is 59 percent more than the 74 initiations in the last 514 days of the previous administration.

Antidumping duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Commerce currently maintains 449 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.  (read more)

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119 Responses to Secretary Wilbur Ross Assesses Aluminum Anti-dumping Duty Against China…

  1. magatrump says:

    This is a HUGE part of MAGA agenda. Making trade fair and reciprocal will lead to more American jobs, a better American economy, a stronger middle class, and a Trump landslide victory in 2020.

    Liked by 22 people

  2. SPANGLER says:

    Trump is greatest POTUS in the century.

    Liked by 16 people

  3. Perot Conservative says:

    Wow, actually enforcing laws and regs?

    Liked by 16 people

    • fleporeblog says:

      Which will lead to more and more of this happening!

      From the article linked above:

      *”We’ve been in a trade war for 30 years,” says U.S. Steel President and CEO David Burritt.

      *He credits Trump’s proposed tariffs for correcting what he said were unfair trading practices and allowing his company to reopen a plant that has been idle since December 2015.

      *On Monday, U.S. Steel reopened the facility in Illinois. Burritt says the move will not only create 800 jobs at his company, but additional jobs throughout the community.

      The plan: restart two blast furnaces and steelmaking facilities at the company’s Granite City Works integrated plant — one now and the other in October.

      The facility had been idle since December 2015. Burritt said the plant closed because there were not enough customers.

      On Monday, Burritt said the combined job gains from reopening the two furnaces will actually be closer to 800 — an it’s not just jobs at U.S. Steel.

      http://www.herald-dispatch.com/news/billion-investment-for-aluminum-plant-planned-in-ky/article_7d450dfd-c856-5bbb-9996-925bd61eefc0.html

      From the article linked above:

      An aluminum company plans to invest $1.3 billion for a rolling mill in Greenup County, which – when completed in 2020 – will hire 550 workers, its top executive said Wednesday.

      “Braidy Industries’ decision to locate in

      Eastern Kentucky has the potential to be as significant as any economic deal ever made in the history of Kentucky,” Gov. Matt Bevin said during an announcement of the plant Wednesday afternoon.

      The mill will be located off U.S. 23 in the South Shore area between the Ohio River and the CSX railroad tracks on a 370-acre site that is about 15 miles northwest of Ashland and 30 miles west of Huntington.

      The jobs will pay $38 per hour plus benefits, totaling about $70,000 per year. It also will bring about 1,000 construction jobs to the region starting in 2018. Construction of the mill will take up to two-and-a-half years. Braidy Industries Inc. CEO Craig Bouchard, of Naples, Florida, said gaining the required permits will take up most of 2017.

      Liked by 15 people

  4. 6x47 says:

    167.16%? If I’m calculating correctly, it means the Chinese aluminum was being sold at only about 1/3 of it’s “fair price”.

    China has a long history of subsidizing metal and exports of metal products. When I was the purchasing agent for a major manufacturer of sprinklers and irrigation parts in the late 1990’s-early 2000’s I bought finished goods out of China as well as raw materials for my company’s maquiladora plant in Mexico.

    The Chinese could sell me a retail-ready finished good for a landed cost only a little more than the cost of the raw materials in it. I don’t care HOW cheap your labor is, unless the workers are paying YOU that just isn’t possible.

    Liked by 8 people

    • 6x47 says:

      Nope – my math was wrong. China is selling aluminum for about 60% of its “fair price”. But still, a pretty hefty discount.

      And the key here is: Primary metals like aluminum are a “world commodity”. China doesn’t have a secret magical ability to produce and sell aluminum more cheaply than the rest of the world. Especially true considering that the process is highly automated. Machines don’t run for less just because they’re sitting in China.

      Liked by 7 people

      • Gil says:

        The goal is to decimate our industry to concentrate economic power and domination in China. So they take a hit on cost but we lose the ability to compete over time and manufacture in order to defend ourselves in war time. The long game!

        Liked by 17 people

      • Deplorable_Infidel says:

        “China doesn’t have a secret magical ability to produce and sell aluminum more cheaply than the rest of the world”

        The only way China can produce aluminum cheaper (but still not free) than most other countries is it’s use of dirty (American plants have been outfitted with expensive scrubbers for years) coal fired power plants. The modern process frequently used requires copious amounts of electricity.

        “…The conversion of alumina to aluminium metal is achieved by the Hall–Héroult process. In this energy-intensive process, a solution of alumina in a molten (950 and 980 °C (1,740 and 1,800 °F)) mixture of cryolite (Na3AlF6) with calcium fluoride is electrolyzed to produce metallic aluminium: ”

        https://en.wikipedia.org/wiki/Aluminium

        Liked by 4 people

        • Bugsdaddy says:

          Another component of the “secret, magical” ability is by producing an inferior product. Several years ago in the aviation industry certain anomalies in the aluminum used was noted. Upon research and study (metallurgical testing) it was found that while the Chinese produced aluminum contained the absolute minimum compounds of alloy material standards, the comparable standard for US produced aluminum was closer to the maximum standard. Which has resulted in the complete rejection of certain aluminum sheet products by the aviation repair industry (common practice).

          Liked by 10 people

        • Get ready for President Trump’s “TRADE RECIPROCITY – PHASE 2”

          PHASE 1 levels the playing field with ZERO tariffs, quotas and subsidies.

          PHASE 2 levels the playing field with COUNTERVAILING FINES for China’s Per-Unit Pollution of Air and Water, equal to the Premium Cost incurred by American Manufacturers to reduce our pollution levels from China’s current level to America’s regulated level.

          PHASE 3 will charge China REMEDIATION FINES to remove China’s Accumulated Pollution since they began exporting – say when “Nixon Opened China” in 1975.

          PHASE 4 could be REPARATIONS to compensate American stockholders for companies that China drove out of business.

          Liked by 3 people

        • RedBrooke37 says:

          Yes, my husband is a union boilermaker and during the bush administration fitted many coal fire power plants. This is my first post, but I have been lurking for a long time.

          Liked by 4 people

      • China would be selling at about 60% of EXPORT COST, based on a cursory review of the definition, which EXCLUDES any MARGIN that would comprise “Fair Price”.

        Liked by 2 people

      • DiogeneseVindicated says:

        Isn`t that saying the tariffs aren’t steep enough?

        Like

      • thedoc00 says:

        None of the anti-tariff pundits ever answer or discuss the following question. What happens to the cost of manufacturing metals after China 2025 succeeds and China is the only via large source of raw manufacturing required metals? No MBA required for the answer or even fancy algorithm…prices goes through the roof, payable in cash, control of banks, territory or political control.

        Liked by 2 people

    • emet says:

      Actually we don’t really know what they are selling it for because the invoice value does not always reflect the transaction value (undervalued). The Import Specialist reviewing the entry could request proof of payment to confirm that the entered value was accurate.

      Liked by 4 people

    • Carrie2 says:

      6X47: France is also known for supporting their corporations so undoubtedly we have been hit with prices we don’t want to pay any more. I worked with contracts from the French corporations and their country supporting them to cheat us! The EU has a big problem with trading as we all know from Trump attending the G7 (before with Russian the G8). Sorry, but robbing us has stopped. Get used to it!

      Liked by 6 people

  5. 6x47 says:

    The really cool thing about this kind of anti-dumping tariff? China is spending money to subsidize their exports, but Uncle Sam just snatched it back. Nullifies the subsidy AND pockets it.

    Nice!

    Liked by 12 people

    • Doug says:

      Bingo!!!! you are not only giving the product away for less than it cost to make but the US is now pocketing the difference.. in other words they will have to either stop the subsidies or dump somewhere else and other countries will follow the US on this and tariff as well! China has to be able to dump its excess capacity on the world market or their economy will suffer badly, they dont have the domestic demand to make up the slack

      Liked by 10 people

    • nightmare on k st says:

      so China will pay for building the wall?

      Like

  6. Michael says:

    How soon or even if US manufacturing will ramp up?

    Liked by 1 person

    • For America-First companies that decided to build/add capacity when Tax Cuts and First-Year Write-offs for Capital Expenditure took effect January 1st, their planning, 1-year permitting, site acquisition and constriction would probably require 18 months without government waivers.

      We should start to see a YUGE surge in infrastructure preparation, plant construction, production recruiting and training during 2019!

      The longer the China, NAFTA and EU Trade Deals string out, the bigger that surge will be.

      2019 GDP could easily range from 5% to 8% under delayed Trade Deals, before considering the possibility of
      • Tax Cuts 2.0 (15% Personal and Corporate, with possible Tax Credits for Capex if we’re falling short of capacity for high-tariff imports)
      • National Infrastructure Plan that Congress has obstructed.

      Liked by 4 people

  7. Deplorable_Infidel says:

    China Blasts New U.S. Tariff Threat, Warns it Will Retaliate

    The Commerce Ministry criticized Trump’s order for new tariffs on $200 billion of Chinese goods as blackmail.

    https://www.ien.com/supply-chain/news/21009955/china-blasts-new-us-tariff-threat-warns-it-will-retaliate

    “….The Commerce Ministry criticized Trump’s order for new tariffs on $200 billion of Chinese goods as blackmail. In a forceful statement, it said Beijing was ready to “defend the interests of the Chinese people and enterprises.”

    If the tariff hike goes ahead, “China will have to adopt comprehensive measures that combine quantity and quality,” the statement said.

    It gave no details, but China’s lopsided trade balance with the United States means Beijing doesn’t import enough American goods to stick with its strategy of matching the scale of Trump’s tariff increases…..)

    (IMO the Chinese government can “eat it”)

    Liked by 10 people

    • 6x47 says:

      That’s great – China doesn’t IMPORT enough American products to retaliate tit for tat?

      Only one solution, open up their markets THEN retaliate. Genius!!

      Liked by 5 people

    • Bendix says:

      Oooo, we’re scared…

      Liked by 5 people

    • rudy1876 says:

      China has been trying to 8nwind from holding USTreasuries. So, not working too well as T sales re going well. For the first time in a long time, US Citizens are buying US Treasuries Bills, Bonds and oates in big numbers. They have (tried) to use the threat of dumping our T’s as a threat for a long time. If they do, they lose even more of their dwindling leverage. The Fed is in a pickle here too. They WANT to crash the economy (I know that sounds crazy) but this President, unlike any other since Andrew Jackson will call them on it and audit them. They don’t want that believe me. Rand Paul could head the audit! Awesome! So China…I laugh at any mention of blackmail coming from you. Just like NK, this whole thing would have been a lot easier if it was dealt with a long time ago. Thanks Bill Clinton and everyone after him.

      Liked by 6 people

      • Deplorable_Infidel says:

        “They WANT to crash the economy (I know that sounds crazy) but this President, unlike any other since Andrew Jackson will call them on it and audit them.”

        That IS NOT crazy. The globalist oligarchs would like to do that to make PDJT look bad so he would not be re-elected. Remember the trillions at stake. Since most of them are Luciferians, PDJT wants to cut off their supply of children and humans for their sacrifices, too.

        Ronald Bernard High Finance Shocking Revelations (Dutch with Subtitles)

        Liked by 3 people

      • Richard Wicks says:

        US citizens aren’t buying treasuries. The Federal Reserve is buying it’s own debt. It’s just one huge ponzi scheme.

        Liked by 1 person

        • kroesus61 says:

          ….and since the cartel called the Federal Reserve is mostly European Banks I say let them take the load

          Liked by 1 person

        • rudy1876 says:

          Yes, they’re unwinding QE. That is long long overdue. When they started printing money to save the world that THEY set on fire, they had. tiger by the tail with no exit plan, no way out. So now, under this President that they all insist is destroying the global economy, they realize the new Administration is their chance to unwind. But it is an actual fact that Treasury purchases by individuals is way up….big time. I’m not saying that we citizens are going to buy $75B in treasuries, I’m just saying people have an alternative to the musical chair, Ponzi scheme, greater sucker theory that is the stock market today. The economy probably will run into strong head winds, but the Fed Res is in for a rude awakening if that happens. Consider the Fed dead….100 felt under. Most won’t believe it, but it will happen, and it will be glorious. Far down the list of things to worry about right now….but the top of my personal list. Arrests are fun and would be great, but I want to crush the slave debt system of these evil people all over the globe.

          Liked by 4 people

      • kroesus61 says:

        it is VERY hard to “unwind” from US Treasuries when your position INCREASES……LOL

        Liked by 1 person

      • Carrie2 says:

        Rudy1876, just how many Americans even know this is a PRIVATE BANK and not a federal department. Time to close it down and get back to reality in handling our money and not enriching others. Trump knows this so I have no doubt this is on his list of things to do.

        Liked by 3 people

        • motreehouse says:

          Most of Us Treepers for sure. Every one of Rand and Ron Paul’s followers know about the FED. I would say around 25% of general public and anyone involved in finance, trading, etc. Reading The Creature From Jeckyl Island was the moment of my awakening circa 2009. Add most infowarriors and it might be something like 40 million or more of Us.

          Like

          • G. Combs says:

            Heck I had a long discussion about the FED at a back country feed store. ALL the customers joined in and they ALL had at least some knowledge of the Fed. That was back when Ron Paul was running against Obummer.

            Liked by 1 person

  8. Sandra-VA says:

    Two huge plants died here in VA, over the years, thanks to the dumping by China. One of the companies even had to go bankrupt… very sad. Tons of jobs lost.

    Liked by 3 people

  9. jmclever says:

    Bet the CoC is really mad that a law from 1930 is being used to thwart their evil plans. I OTOH find it delicious

    Liked by 10 people

  10. Deplorable_Infidel says:

    Import Now to Beat Tariffs on Goods from China? It Will Cost

    Some freight industry observers think a rush to beat the tariff deadline is inevitable.


    In this March 12, 2018, file photo, a tugboat assists a container ship in docking at the Port of Oakland in Oakland, Calif. President Donald Trump announced Friday, June 15, 2018, that starting next month the U.S. will impose a 25 percent tariff on up to $50 billion in Chinese imports.

    AP Photo/Ben Margot, File

    “….New tariffs on imports from China may leave American companies with a choice — pay a higher freight bill now or pay the tariffs starting in three weeks.

    It can take several weeks for ship-borne cargo from China to reach the United States — too late to beat the July 6 deadline. That could lead to more demand in the short run for air-freight services.

    “The only question is how much do you want to pay,” said Brandon Fried, executive director of the Airforwarders Association, “and which is better — paying that or paying the increased tariff?” Shipping by air is several times more costly than ocean shipping and the gap grows the heavier the cargo…”.

    “….President Donald Trump announced Friday that starting next month the U.S. will impose a 25 percent tariff on up to $50 billion in Chinese imports. Trump targeted Chinese industrial and agricultural machinery, aerospace parts and communications technology. Most consumer goods from China such as smartphones and TVs were left off the list….”

    https://www.ien.com/supply-chain/news/21009731/import-now-to-beat-tariffs-on-goods-from-china-it-will-cost

    Liked by 2 people

    • President Trump’s plan is brilliant:
      • Heavy Industry Renaissance FIRST.
      • Consumer Durables NEXT.

      Can you imagine how Chinese manufacturers’ supply chains and factory loading is being whipsawed as some customers cancel to source elsewhere and others QUICKLY load up on inventory with spiked orders?
      • They have no clue what’s real and what’s going to dry up.
      • Every stage of their upstream supply chains will get worse, and they’re all Chinese!
      • When it stops, they could be stuck with IDLED plants, LAID OFF workforces and a YEAR or more of unsalable inventory!

      I’ve been through this before in the oil patch and consulting clients, and it ain’t pretty.

      China is SO SCREWED!

      Liked by 6 people

  11. Florida_Frank says:

    How do they come up with selling it at 167% less than fair market value? If they sold it at 100% less, they would be giving it away for nothing…

    Like

  12. Richard Wicks says:

    You can’t “dump” a commodity.

    If China is selling aluminum below market value, the solution is that every other country on the planet should stockpile it, while prices remain below market value, then resell it later to China after China has depleted their supply, thereby making a profit.

    And that goes for any commodity. Of course, you physically have to own it, because if you just buy contracts, force majeure will be invoked when the scam falls apart, as all commodity fixing always does.

    How did we end up with so many people in the United States that don’t understand free market economics?

    Liked by 2 people

    • Sunshine says:

      It’s the raw materials used to process the aluminum or steel.

      China often wins mining extraction rights in foreign countries because they can afford to bid the highest price to be awarded the contract.

      They then bring in their underpaid workforce by boat, extract whatever, dump it in trucks that transport the loads to the ports headed back to China where everything is processed and resold to us.

      Thus, there’s no point in stocking up in aluminum.

      Liked by 5 people

      • Sunshine says:

        BTW: China’s workforce is very underpaid, especially in the processing and manufacturing industries. That’s why China can sell at rock-bottom prices, aka dumping.

        Liked by 3 people

      • Sunshine says:

        Re the extraction sites, I forgot to mention they also often build their own lodgings, they have their own cooks, their own food, their own doctors… In other words, they bring ZERO in advantages to the local populations.

        Liked by 6 people

        • CHINA’S Raw Materials Strategy:
          Buy Dictators.
          WAY cheaper and simpler than competitively buying mines.

          Liked by 2 people

          • Sunshine says:

            I always wondered how the Chinese know by what amount should they overbid to win the contract.
            The natural resources industry is under-developed in China. They’re too busy buying us up.
            I figure the day will come when they start exploring their own land and we’ll pay the price.

            Like

        • yucki says:

          They do big business in construction in the Gulf region in a similar fashion: low-ball contract bids, import all necessary materials plus laborers. They feed and house (and supervise) this coolie workforce on site.
          Keeps slave-labor charges against these sheikdoms to a minimum.
          (Of course, skyscrapers in Dubai become pillars of fire every other week.)

          Like

    • Carrie2 says:

      Richard Wicks: Easy because business/economics not truly taught for the last 6 1/2 decades of democrat owned education. I know I had to learn all this to get my degree and thank God I got a great education because our education systems were controlled and teachers socialists or communists or just plain lousy teachers.

      Liked by 2 people

    • kroesus61 says:

      well professor seems YOU failed the course in economics……..China is SUBSIDIZING their STATE owned production of steel and aluminum….with government dollars being infused into the process WHEN exactly does their “supply” run out?……LOL

      Like

    • Rhoda R says:

      That doesn’t solve the problem of substandard alloys. I’m not sure what kind of slag is formed when alumina is converted to aluminum but I suspect that the Chinese aren’t as particular about getting these inclusions out of the final product either.

      Liked by 2 people

    • Richard:
      Do you personally invest in commodities to hold them until a country runs out?

      Liked by 1 person

    • piper567 says:

      Richard,
      the same way we ended up with so many people that can’t do math, don’t know a thing ab US History, and can’t legitimately graduate from HS.

      Like

  13. No_BlahBlah says:

    Since the Chinese ‘economy’ , is a government controlled economy run by communists,

    ALL trade (/s) is dumping,
    The gloves are off

    Liked by 2 people

  14. Dutchman says:

    But remember, DJT has the utmost respect for Xi, has a great personal relationship, blah, blah,…

    Panda face, IN YOUR FACE! HAH!

    Like

  15. Fools Gold says:

    I hear a wolf howling gathering it’s pack for the take down of a pirate trade partner!

    Like

  16. Shiggz says:

    My opinion on resource dumping is to have our government purchase all discount surplus and add it to stockpiles like the petroleum reserve.

    Like

    • svenwg says:

      And just where do you think all the money to do that would come from? The US is already $20 Trillion in debt with over $100 Trillion in unsecured debt, your suggestion is ludicrous, to say the least.

      Like

  17. Shiggz says:

    Heck I’d be happy if we just brought back copper and aluminum for like dollar coins.

    Like

  18. Michael says:

    Been cleaning up my late father’s ancient Dodge RV.
    It is like a trip down memory lane.
    EVERYTHING in it has a “Made in the USA label.”

    Liked by 1 person

  19. Ray Matt says:

    Finally Wilbur Ross puts a spike in that fake narrative that it is soooooooooooooooo insulting to Canadians who fought in the trenches with the USA..for the USA to apply tariffs on national security grounds cuz Trump thinks Canadian poses a military threat cuz he thinks Canada burned down the White House in 1812.

    How cleverly and deceitful Canada has spun that tale to embarrass the President. Just two days before the G7 summit, Trudeau leaked a phone conversation he had with Trump to CNN. He made it appear that Trump was serious about the 1812 incident while Trump was joking. http://brianlilley.com/how-insanely-stupid-is-justin-trudeaus-team/
    CNN spun the story and other MSM networks jumped on board and spread the fake narrative.

    Meanwhile Canada’s government broadcaster can’t get its own history right. “ A raid from Upper Canada that sacked Washington” https://www.youtube.com/watch?v=qYqTzSrgDVI

    At the G7, after Trump make concession on the sunset clause ( http://brianlilley.com/what-trudeau-did-to-set-trump-off-it-will-surprise-you/ ), Trudeau gives a press conference and resorts to the bogus narrative; the tariffs based on Canada posing a military threat are “somewhat insulting” and Canadians “won’t be pushed around” . https://www.youtube.com/watch?v=Lcv4kmLIEtk

    Just days after the NY Times publishes an interview with Canada’s Foreign Minister Freeland where she compares Trump to Hitler, Freeland is awarded the Diplomat of the year Award. In her acceptance speech she appeals to the bogus narrative; that its soooooo hurtful for Trump to view Canada is a military threat…”our soldiers fought together” ..and she infers Trump lacks integrity, that he is incompetent and dishonest. “And it means governing with integrity. Facts matter. Truth matters. Competence and honesty, among elected leaders and in our public services, matter.”

    Like

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