Skip to main content

It’s Been a Busy Summer

It has certainly been an interesting summer for our trade orders.  We have had several very favorable decisions in our case.  In fact, one might say we ‘ran the table’.  Here is a summary of those decisions.

At the end of June, the Department of Commerce (DOC) issued its preliminary decision in their Fifth Administrative Review of the duties being applied in our case.  In that decision the DOC established a new tariff level of 86% on the antidumping (AD) side, and 20% in the countervailing duty (CVD) case for a combined tariff of 106%.  This is nearly double what was calculated last year.  This is especially impactful in circumstances where kits are being imported.  Because the extrusions are the only item taxed in a kit, or say, a curtain wall unit, the other elements of the kit may be subsidized by the Chinese enough to offset the extrusion tariff on the extrusions.  We have every confidence that the DOC will stick with these numbers when they announce their final determination later this year.

The DOC made a decision in the fake pallet case, and the 5050 alloy circumvention scheme.  Both were in our favor.  Having seized a reported $25 million worth of fake pallets, the scope ruling that they are covered by our orders opens the door for Customs and the DOC to decide how duties will be applied to those items.  Given the extent of this scheme, penalties could be staggering.  In the 5050 case the DOC held to their preliminary decision that 5050 alloyed extrusions will be covered by our orders.  We have been receiving reports from across the country that orders have already been coming back to domestic extruders.

With all of this momentum at our backs, it is has been quite difficult to get our heads around the magnitude of the threat to our industry being posed by the Trump Administration’s 232 investigation. As previously written, there are petitioners in this matter that are asking that tariffs be placed on all imported primary aluminum.  We have heard suggested tariff rates from 2% - 30%.  As an industry, we simply cannot afford to pass through a duty to our customers that ultimately compete in a global economy.  Imagine how difficult it will be for your customers to win business against foreign OEMs that don’t have that tariff embedded in their costs.  This is an issue we will be discussing in Denver at the Aluminum Anodizing & Extrusion Summit next month.

On the other hand, the 232 also presents a real opportunity for us to persuade the Administration that the real enemy is China and that any remedy should be focused on them.  Additionally, we need to make the case that any country that allows China to use them as a third party to circumvent our orders should also have duties placed on their exports to the U.S.  We are working with other groups now to form a consensus around this issue.  This too will be addressed in Denver.

In total, it’s been a great summer for our trade case.  So, when we meet next month at our Management Conference we will certainly want to lift a glass in celebration for what we’ve accomplished, then roll up our sleeves and get to work on the 232.

Comments

Popular posts from this blog

Section 232 Implications: Get the Latest

 Recently, the AEC released a detailed fact sheet outlining the implications of Section 232 tariffs on aluminum imports, available for review on our website here. This document underscores our ongoing commitment to transparency and informed decision-making within our member base. Previously, we updated the 232 Derivative Products List to include a comprehensive breakdown of HTSUS codes and product descriptions, aimed at providing clarity for our stakeholders accessible here . Additionally, The Bureau of Industry and Security (BIS) within the Department of Commerce established a formal process for the addition of aluminum products designated the USHTS codes. The first window for submission opened on May 1, 2025, and closed on May 15, 2025. After the posting and public comment period occurs the BIS will make a final determination within 60 days. In addition to these regulatory updates, the Trump Administratio...

Valuation, USMCA, and Fair Trade Priorities

 The primary focus of our government affairs work at this moment centers on the Section 232 valuation issue currently under discussion in Washington, D.C.  As highlighted during the recent Aluminum Summit and in prior AEC communications, there remains uncertainty regarding how the Administration intends to resolve this matter. The original Executive Order that established the Section 232 aluminum tariffs made clear that the tariffs were intended to apply to the full value of the imported aluminum extrusion, not solely the value of the aluminum content within the product.  At this time, it remains unclear whether the Administration will seek to address the issue by issuing a new Executive Order or by providing additional interpretive guidance through U.S. Customs and Border Protection (CBP).  The AEC is actively monitoring these discussions and will update members as soon as a definitive course of action emerges. Parallel to the valuation discussions, attention is tur...

Adjustments to the 232 Tariffs

 On June 3, 2025, an Executive Order (EO) was issued adjusting the Section 232 tariff on aluminum and aluminum derivative products (DPL) from 25% to 50%.  In addition to the adjustment in the 232 tariff, the EO also contains language that adjusts how the 232 tariff is applied. The following is a summary of the key points.  Aluminum and aluminum derivative products within HTS Ch. 76 and outside HTS Ch. 76: the 50% duty applies only to the aluminum content.  Any non-aluminum content in these products will be subject to the reciprocal tariff (currently at 10%).  This is a change from the February 10, 2025, EO for aluminum and aluminum derivative products in HTS Ch. 76 where the 232 tariff was applied to the full value of the product.  With the most recent EO, the 232 tariff now applies only to the aluminum content and the 10% reciprocal tariff applies to the non-aluminum content.  The current EO also changes how the 232 Auto tariffs, 232 aluminum tariffs ...