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
Price: Expect new trade shocks as Trump’s ‘reciprocal’ tariff negotiations continue
President Trump cast a wide net with the proposed, reciprocal tariffs. The negotiating stage will be critical to determining the success of his strategy. And for those suffering tariff whiplash, don’t expect the pace of change to slow down just because the reciprocal tariffs are entering a negotiating phase.
SMU Survey: Less support seen for Trump tariff policies
Meanwhile, an increasing number think it's too early to say whether the penalties are going to bring more manufacturing to the US.
CRU: USW seeks exclusion for Canada from Trump’s tariffs
The union is also urging stronger enforcement against countries such as China which break trade rules, and a coordinated Canada-US strategy to protect union jobs across the North America
Price on trade: A lot happened last week – and it wasn’t all about tariffs
Should foreign investment be allowed to reshape the American steel Industry? Not to be lost in the recent on-again-off-again tariff frenzy, Nippon Steel’s proposed takeover of U.S. Steel has also found itself in President Trump’s crosshairs when it comes to trade and industrial policy. Nippon Steel initially announced its nearly $15-billion bid for U.S. Steel […]
Trump signs executive order aimed at making US shipbuilding ‘great again’
President Trump on Wednesday signed an executive order meant to breathe new life into American shipbuilding and curb Chinese dominance in the sector.