Last month we reported that we found ourselves in-between announcements from the Administration about a number of issues. This month we have our answers, whether we like them or not! Over the last few days the AEC has issued a number of Trade Alerts about the President’s decision to re-impose the aluminum 232 tariffs on Canada. Those new orders will only cover unalloyed, unwrought aluminum. No downstream products were included in this decision. Shortly thereafter, Canada retaliated by imposing a 10% tariff on several aluminum related products from the United States, including aluminum extrusions. Since then, Canadian manufacturers, much like those in the U.S. did, voiced their opposition to Prime Minister Trudeau’s decision. So, there we have it.
After the dust settles, U.S. extruders expected Trump’s reinstatement of the 232 tariffs might bring about raw material price parity with Canada. Whether that plays out or not is left to be seen. Nevertheless, even if parity on raw material prices is achieved, the new Canadian tariff on U.S. produced aluminum extrusions offsets any benefit. U.S. aluminum extruders are pulling their hair out in utter disgust at the mess Washington D.C. has made of our industry. While a strong economy diluted the impacts to most extruders in the U.S. and Canada, that is clearly not the case now. It is a tragedy that at a time when every pound counts, the Administration keeps making it more and more difficult for us recover. The idea that Canada and the U.S. could be involved in a trade war over aluminum was unthinkable three years ago. However, that is exactly where we are. It is for this reason that we continue to call for an end to this horrible policy.
So much for bad news, now let’s discuss our case. Last week the Department of Commerce (DOC) ruled in our favor by deciding the ground clamps used by Schletter, Inc. to mount solar products are covered merchandise and subject to our duties. This is another great win for our industry and the second win in a row on solar mounting systems. As I’ve mentioned before, this is not only a win for our members that supply these products, but a big win for any extruder that manufacturers subassemblies for their customers. The last Administration unilaterally decided that subassemblies were final finished products and thus not covered. That is why we lost a similar solar mounting system case in 2015. However, with our major victory in the courts last year, the Department of Commerce has changed their opinion and now will no longer exclude a product just because it is a subassembly. The Fair Trade Committee has worked very hard to force the Feds to flip that decision, and now that hard work is paying dividends!
In another key scope challenge, a decision is imminent on Reflection Window + Wall, LLC. We submitted comments on Reflection Window’s resubmitted scope request for window wall system kits under the “finished goods kits” exclusion on March 31, 2020. The Department issued another supplemental questionnaire to Reflection on April 28, 2020, and Reflection responded on May 11, 2020. We submitted an additional set of comments on July 13, 2020 and have requested a meeting with Commerce. We expect the Department to issue a scope ruling rather than a supplemental questionnaire. As previously discussed, this is a key issue for curtain wall extruders. Regardless of the decision from the DOC, expect this to be appealed. However, if the DOC rules in our favor, these products will be tariffed until a court overturns the decision.
On the circumvention front, we can report that we have two EAPA (Enforce and Protect Act) claims in the system. One of them may be decided upon by the end of the month. Confidence is high that we will have some great news to share. The second case will most likely remain open until December – again, with the promise of good news.
In summary, for issues that we manage and control, I’ve had great news to discuss. For those issues left to the politicians…not so good. We will keep everyone posted on any twists and turns that may come in our case, or with the 232. As always, thank you for your continued support.
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