Some Indian experts believe that the newly imposed import tariff on aluminum sheet products, which includes Indian aluminum sheet, by the United States will have little impact on the country's aluminum producers in any significant way.
The United States imposes anti-dumping duties on Indian aluminum sheets, as well as aluminum sheet from 17 other countries.
Last Friday, the United States imposed new tariffs on aluminum sheet products from 18 countries, including India, worth a total of $1.96 billion in the United States.
According to U. S. Commerce Secretary Wilbur Ross, the duty was imposed after the United States determined that the goods were being dumped in the market.
“The Department of Commerce's aluminum sheet investigations represent the most comprehensive trade enforcement action undertaken by the United States in more than two decades,” said Secretary of Commerce Wilbur Ross. The preliminary determinations that aluminum sheet imports from 18 countries have been dumped, and in some cases unfairly subsidized, into the United States market are awaiting the comments of interested parties.
Ross went on to say that tariffs were being imposed immediately despite the fact that the department's reading of the dumping was preliminary.
According to a release from the Department of Commerce announcing the preliminary determination, “as a result of these decisions, Commerce will instruct U. S. Customs and Border Protection (CBP) to collect cash deposits from importers of common alloy aluminum sheet from the above-named countries based on the preliminary rates noted above.”
Brazil, Croatia, Egypt, Greece, Italy, Oman, Romania, Serbia, and Slovenia are the other countries on the list in addition to India. The other countries on the list are the following: South Africa, South Korea, Spain, Taiwan, and Turkey.
The Aluminum Association Common Alloy Aluminum Sheet Trade Enforcement Working Group and its individual members have filed a petition with the Federal Trade Commission in connection with the investigation.
A final affirmative determination by the Department of Commerce will be followed by a final determination by the United States International Trade Commission, which is expected to occur around April 5, 2021. China, on the other hand, did not make the cut. However, this is due to the fact that the United States had already imposed tariffs on the country's aluminum exports.
The tariffs were necessitated by an increase in the consumption of certain products in the United States during COVID-19, such as recreational vehicles, which increased the importance of aluminum sheet pricing as a result of the increase in consumption.
India has had little of an impact.
However, according to some Indian industry experts, the country will not be adversely affected by the new United States tariff. What is the reason for this? Simply put, India exports only a small amount of aluminum sheet to the United States.
Biswajit Dhar, a professor at Jawaharlal Nehru University and a trade expert, told the newspaper The Telegraph that India sold such sheets to the United States in limited quantities. Taking this perspective, the duty's impact would be negligible.
From 51.18 percent to 352.71 percent, the tariff rate against Germany is in effect. Furthermore, tariffs on imports from Brazil will range from 49.48 to 136.78% of the value of the goods.
Anti-dumping duties on common alloy aluminum sheet imports from India, on the other hand, will range from 0-47.92 percent.
Meanwhile, a ministerial dialogue between India and the United States is scheduled for October 26. Having said that, it is unclear whether or not this new duty will be discussed during these negotiations.
Do you have a pending negotiation on your aluminum purchase? Make certain that you understand how your service centers will bargain with you.