Currency Manipulation to Be Subject to Countervailing Duties

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.