July 12, 2016
Partner John Herrmann was featured in the Law360 article “Commerce Issues Preliminary Duties In Chinese Steel Fight.” The U.S. Department of Commerce assessed a set of preliminary countervailing on Chinese steel exporters accused of dumping their product on the U.S. market at prices less than their manufacturing costs through hefty subsidies from the Chinese government. The agency calculated a 57.3 percent subsidy rate on sole cooperating respondent Shanxi Taigang Stainless Steel Co. Ltd. and a rate of 193.12 percent on several others that did not participate. Commerce assigned the same rate on all other producers of stainless steel and strip in China as it did on Shanxi. The decision comes five months after a group of domestic steel producers urged Commerce to intervene, saying the availability of cheap Chinese product was hurting their sales and depressing prices across the U.S. market.
The American Steelmakers are represented by Mr. Herrmann, who noted that, “We are very pleased with the Commerce Department’s affirmative preliminary determination that the government of China provides unfair subsidies to its domestic producers of stainless steel and strip. The requirement that U.S. importers begin to post estimated countervailing duties on shipments of stainless steel sheet and strip from China will help to eliminate unfair trade and restore a level playing field in the U.S. market."
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