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Trade Enforcement Still Going Strong

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 We appreciate the participation of everyone who attended the recent Aluminum Summit.  This event welcomed over 350 attendees.  Given the comprehensive program, it is appropriate to summarize the trade-related presentations and discussions.  Robert DeFrancesco of Wiley Rein LLP provided an in-depth analysis of the current trade and tariff environment and its implications for the industry.  His contributions during both the Focus and General Sessions offered valuable insights that are pertinent to all members.

The antidumping (AD) and countervailing duty (CVD) orders on Chinese aluminum extrusions are still very much in play.  Right now, AD rates range from 32.79% to 86.01%, and CVD rates from 7.37% to 216.61%.  The 14-country case is still under appeal, and there are several legal challenges in motion.  Robert reminded us how important it is to defend the scope of these orders.  Recent rulings confirmed that door thresholds and heat sink manifolds are covered.  There has also been a rise in scope ruling requests—think wall standoffs, LED standoffs, and screw covers.

The Aluminum Extruders Council (AEC)  is committed to defending the China I orders and the AEC’s Fair Trade Committee (AEC FTC) is working aggressively through the current Annual Review and making preparations for the Sunset Review in 2027.  The AEC FTC is actively fighting evasion tactics like transshipment through Mexico and alloy switching.  Tools like EAPA allegations and e-allegations are being used more frequently.

Tariffs: Layered and Litigated

In the Focus Session, Robert walked us through the current state of aluminum tariffs.  Most countries are now facing a 50% Section 232 tariff, while the UK is at 25%.  Commerce is also expanding the list of derivative aluminum products, with a new inclusion cycle that opened in September.

He explained tariff stacking—how multiple tariffs can apply to a single product.  For example, an extrusion press might not be hit by 232 tariffs but could still face IEEPA fentanyl, reciprocal, and Section 301 tariffs.

And speaking of IEEPA, there’s a major court case underway.  The Court of Appeals ruled that IEEPA can’t be used to impose tariffs, and now the Supreme Court is reviewing it.  While nothing is changing immediately, the administration might shift to other trade laws like Sections 122, 232, or 301.

Valuation and Negotiations: What’s Next?

Robert also clarified how tariffs are calculated.  For 232 tariffs, it’s based on the full entered value of the aluminum article, minus any non-aluminum content.  He gave examples like bumpers and micro channel heat exchangers to show how this works.  

Finally, trade talks are ongoing with the UK, Japan, EU, and USMCA partners.  These negotiations could impact tariff rates and quota systems down the line.

In summary, the landscape for aluminum trade enforcement remains dynamic and complex, with ongoing legal challenges, evolving tariff structures, and persistent efforts to combat evasion.  As negotiations continue and new rulings emerge, stakeholders must stay vigilant and informed to navigate these changes effectively.  The commitment of organizations like the AEC and its Fair Trade Committee ensures that fair competition and compliance remain at the forefront, shaping the future of the industry and protecting its interests in a rapidly shifting global market.


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