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
Leibowitz on Trade: Who is winning the tariff debate?
Most economists will tell you that universal tariffs will result in inflation and reduce demand, causing a recession or worse. (After all, this is what happened in the 1930s). It is a rare product that is so essential that demand will not go down if prices go up.
Canadian steel industry fears thousands of job losses from US tariffs
The Canadian steel industry is bracing for thousands of job losses because of US tariffs, the Canadian Steel Producers Association says.
US, Mexico mull tariff-rate quota system: Report
Could the US and Mexico end up with a tariff-rate quota system?
OCTG industry salutes Customs for catching trade crooks
The US OCTG Manufacturers Association is commending US Customs for intercepting another Thai company's attempt to illegally transship Chinese oil pipe to the US.
Price: Is It Nippon Steel USA or a partnership? And what does that mean for imports?
The document makes clear that Nippon Steel, through Nippon Steel America, will have “100% ownership of [the] common stock.” So if you want to own an interest in U.S. Steel’s future success, you will need to buy shares in Nippon Steel on the Nikkei stock exchange. It certainly will not be in your domestic S&P 500 ETF.