Yesterday, the U.S. announced that, effective Sept. 24, it would impose an additional ad valorem tariff of 10% on imports of butt weld pipe fittings and carbon steel flanges from China. If resolution of this matter with China is not reached by the end of the year, the tariffs will increase to 25% on Jan. 1, 2019.

 

“As a family-owned and operated business that manufactures these products here in the U.S., it is gratifying to see the U.S. finally take direct and decisive action against these Chinese imports,” Weldbend President and CEO James Coulas Jr. said. “For generations, Weldbend and its employees have manufactured great products, and we are extremely pleased with the administration’s decision to address China’s unfair trade practices. This action, along with the recent preliminary decision on Malaysian circumvention, and the inclusion of welded outlets/shaped nipples under the Chinese anti-dumping order, give us great hope that the U.S. government finally recognizes the threat of China’s cheating.”

 

These additional tariffs are being imposed pursuant to Section 301 of the Trade Act of 1974, which is on top of the already-existing anti-dumping duty orders on carbon steel butt weld pipe fittings from China (with anti-dumping duties from 35.06% to 182.90%), and is in response to China’s failure to change its policies that coerce American companies into transferring their technology and intellectual property to domestic Chinese enterprises (policies aimed at bolstering China’s stated intention of seizing economic leadership in advanced technology).