U.S. Imposes Preliminary Anti-Subsidy Ruling on Aluminum Profiles from Four Countries

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On March 5, 2024, the U.S. Commerce Department issued affirmative preliminary countervailing duty determinations on aluminum extrusions exported to the U.S. from China, Indonesia, Mexico, and Turkey. This move signals heightened U.S. trade protections for aluminum extrusions, affecting multiple countries and numerous producers.

Chinese producers and exporters faced the highest rates in the preliminary ruling. Hangzhou Sanhua Micro-Channel Heat Exchanger Co. received a 15.41% duty, while Qingdao Hanova Profiles Manufacturing Co. and six others were hit with 169.66% rates—a major blow to Chinese exporters, raising costs and market entry barriers. Other unnamed producers face a uniform 15.41% rate.

Indonesian producers were assigned rates ranging from 0.52% to 43.56%, reflecting varying penalties. Mexican and Turkish producers face duties of 0.19%–77.82% and 0.82%–147.53%, respectively.

The Commerce Department will issue final determinations by July 15, 2024. If upheld, the rulings will have long-term impacts on aluminum extrusion exports from these countries.

The investigation began on October 25, 2023, when the Commerce Department initiated anti-dumping and countervailing probes into aluminum extrusions from the four nations. It also launched anti-dumping investigations into extrusions from Colombia, the Dominican Republic, Ecuador, India, Italy, South Korea, Malaysia, Thailand, the UAE, Vietnam, and Taiwan.

The preliminary rulings highlight U.S. scrutiny of aluminum extrusion trade and signal to global producers to monitor international trade shifts. Affected firms must reassess global strategies and enhance compliance, potentially exploring new markets or optimizing production to adapt to U.S. market changes.

In summary, as the final ruling on July 15, 2024 approaches, participants in the global aluminum profile market will continue to monitor the U.S. final decision and its impact on the global aluminum profile trade landscape.