September 12, U.S. Secretary of Commerce Wilbur Ross has announced the affirmative preliminary determination in the countervailing duty (CVD) investigation, finding that exporters of tool chests and cabinets from China received countervailable subsidies ranging from 17.32 percent to 32.07 percent.

The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of tool chests and cabinets from China based on these preliminary rates.

“The subsidization of goods by foreign governments is something the Trump Administration takes very seriously,” said Secretary Ross. “The Department of Commerce will continue to stand up for American workers and business’s in order to ensure that China does not take advantage of the most open market in the world.”

In 2016, imports of tool chests and cabinets from China were valued at an estimated $989.9 million.

The petitioner is Waterloo Industries, Inc. (MO).

Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through September 11, 2017, Commerce has initiated 62 antidumping and countervailing duty investigations – a 41 percent increase over the previous year. For this same period in 2016, Commerce initiated 44 AD and CVD investigations.

CVD laws provide U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States. The Commerce Department currently maintains 407 antidumping and CVD orders which provide relief to American companies and industries impacted by unfair trade.

Unless the final determination is aligned with the concurrent antidumping duty investigations, Commerce is currently scheduled to announce its final CVD determinations on November 22, 2017.

If the Commerce Department makes an affirmative final determination of subsidization and the U.S. International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order. If the Commerce Department makes a negative final determination of subsidization or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.