China Responds to US Aluminum Foil Dispute

The Trump administration is planning to impose tariffs up to 81 percent on aluminum foil imported from China.

The U.S. Department of Commerce handed down an early round of tariffs on Chinese aluminum foil late Tuesday after preliminarily determining that Beijing has been unfairly subsidizing its domestic producers.

"The association and its foil-producing members are very pleased with the Commerce Department's finding and we greatly appreciate Secretary Ross's leadership in enforcing USA trade laws to combat unfair practices", said Heidi Brock, President and CEO of the Aluminum Association.

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Ross said without a strong American aluminum industry, the defense industry wouldn't be able to obtain enough aluminum from US companies. The Commerce Department this week issued "preliminary subsidy margins ranging from 16.56 to 80.97 percent of the value of the imported aluminum foil" after finding that Chinese producers benefited from state subsidies, the Aluminum Association said.

"Commerce calculated preliminary subsidy rates of 28.33 percent ad valorem for Dingsheng Aluminum Industries (Hong Kong) Trading Co., Ltd, 16.56 percent for Jiangsu Zhongji Lamination Materials Co., Ltd., the two companies that ultimately participated in the proceeding".

"China urges the U.S.to act cautiously and make a fair decision to avoid any negative impact on the normal economic and trade exchanges between China and the USA", the ministry said. The case is separate from the department's Aluminum 232 investigation launched in April into whether China's aluminum overcapacity, dumping, illegal subsidies and other factors threaten US economic security and military preparedness.