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The U.S. Aluminum Extruders Coalition, together with the United Steelworkers (USW) union, has initiated a legal move against 15 countries, alleging unfair trade practices. The coalition claims these countries are significantly undermining the American aluminum extrusion industry by dumping products in the U.S. market at prices below fair value, with some rates as high as 256%.
Accused countries include China, India, Mexico, South Korea, Vietnam and Italy, among others. The petition underscores that certain nations are benefiting from unfair subsidies, including government-granted tax breaks and reductions in land and raw material costs, providing an unjust competitive edge to their respective aluminum industries.
Jeff Henderson, the President of the Aluminum Extruders Council, expressed his concerns, stating, "American extruders and workers have faced tremendous sales losses due to these skewed trade dynamics... The percentage of the market being supplied by the domestic industry is at its lowest level ever recorded. If the industry did not take this bold measure, our nation would lose this valuable piece of the supply chain."
The petitions were presented to both the U.S. Department of Commerce and the U.S. International Trade Commission (USITC). This move is rooted in increase of low-cost aluminum extrusion imports since 2019, which has adversely impacted American businesses and workers.
As a result of the increasing volumes of dumped and subsidized imports, U.S. extruders have been unable to grow their production and sales despite growing demand and have suffered significant declines in profitability.
The products in contention span a wide range of aluminum extrusions, from hollow profiles and rods to specialized components like solar panel mounts and window assemblies. Some aluminum products from China have been previously subjected to trade duties, but this new case is set to encompass additional products previously overlooked.
The Commerce Department is expected to decide on launching investigations within the next 20 days, while the USITC's preliminary decision is anticipated in 45 days. The comprehensive investigation process is projected to conclude by mid-2024, though duties might be imposed on imports sooner if preliminary findings suggest immediate action is warranted.
The petitioners include the 14-member U.S. Aluminum Extruders Coalition and the United Steelworkers union,
The petitioners are represented by Robert DeFrancesco, a senior partner at Wiley’s International Trade Practice.
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