The Trump administration is considering a plan to tax aluminum foil imports from China after finding that the country China is heavily subsidizing aluminum foil.
The Department of Commerce could impose a reciprocal 16.56 to 80.97 percent tariff on aluminum foil after the department discovered that the Chinese government supported aluminum producers.
“The United States is committed to free, fair and reciprocal trade, and will continue to validate the information provided to us that brought us to this decision,” Commerce Secretary Wilbur Ross said in a statement Tuesday. “The Trump Administration will not stand idly by as harmful trade practices from foreign nations attempt to take advantage of our essential industries, workers, and businesses.”
The Commerce Department won’t make the countervailing duty decision, which allows the government to impose duties in order to create a more level playing field, until at least October 23.
The investigation into aluminum foil producer subsidies is not part of a broader investigation into China’s aluminum trade that President Donald Trump initiated by executive order in March.
The Aluminum Association, a trade group representing foil producers which first complained about China’s attempt to manipulate the aluminum market, was pleased with the administration’s preliminary decision.
“U.S. aluminum foil producers are among the most competitive producers in the world, but they cannot compete against products that are subsidized by the Chinese government and sold at unfairly low prices,” Heidi Brock, the president and CEO of the association, told CNN.
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