November 25, 2020–For the first time in an investigation of a trade subsidy, the U.S. Commerce Department identified China’s undervalued currency as a state subsidy warranting a financial penalty at the U.S. border.
On Tuesday, the department announced it is asking the U.S. Customs and Border Control to begin collecting cash deposits at a rate of 122.5 percent from importers of Chinese twist ties. The rate reflects the total amount of subsidies U.S. officials estimate Chinese twist tie exporters receive from their government.
Next Steps
Commerce Secretary Wilbur Ross. said the department would “continue to use the legal tools at our disposal to aggressively counter currency undervaluation and other unfair subsidies, further ensuring a level playing field for American businesses and workers.”
A final determination is expected by February 17, 2021. It’s unclear what a new administration under incoming President Joe Biden will decide.
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