US slaps duty on Chinese wind tower imports to save local cos

The decision by the US commerce department is a victory for the Wind Tower Trade Coalition, a group of US producers who say they are being driven out of business by low-priced imports from China and Vietnam.

The commerce department, in a move likely to further strain trade ties, said Chinese manufacturers received countervailable government subsidies ranging from 13.74% to 26% of the cost of the towers.

China criticised the move, urging Washington to adopt a more consultative approach to resolving trade rows.

Readily resorting to protectionist measures is not conducive to China and the US continuing to cooperate in the trade and economic fields, Chinese foreign ministry spokesman Liu Weimin said.

The US tariffs are intended to offset Chinese government subsidies with Titan Wind Energy and related companies hit with a 26% preliminary duty. CS Wind China Co and related companies were given a 13.74% duty and all others 19.87%.

“This is an important step in remedying the harm caused by unfairly traded wind-tower exports,” Alan Price, chair of Wiley Rein’s International Trade Practice and lead attorney for US producers, said.

Importers will have to post bonds or cash deposits based on the preliminary countervailing duty rates while the commerce department continues its investigation.

A final decision on duty rates is expected in August followed by a US International Trade Commission vote in September

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