America Declares Trade War on Chinese Sandpaper Ingredients
Published Date: 1/14/2025
Notice
Summary
The U.S. Department of Commerce is starting an investigation into whether China is unfairly helping its companies sell sol gel alumina-based ceramic abrasive grains in the U.S. This affects American producers like Saint-Gobain Ceramics & Plastics, who say Chinese imports might be hurting their business. If unfair help is found, extra taxes could be added to these imports starting January 6, 2025.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Investigation Could Lead to Import Taxes
The U.S. Department of Commerce has opened a countervailing duty (CVD) investigation into sol gel alumina-based ceramic abrasive grains from China. If Commerce and the International Trade Commission find countervailable subsidies and injury, extra duties (taxes) could be imposed on those imports beginning January 6, 2025.
Wide Product Scope Covers Grain Components
The investigation’s scope covers sol gel alumina-based ceramic abrasive grains (minimum 94% aluminum oxide, grain sizes 0.85 mm to 0.0395 mm / ANSI grit sizes 20 to 280) and includes these grains even when incorporated into downstream articles (like abrasive papers, grinding wheels), though only the grain component is covered. The notice lists specific HTSUS subheadings (including 2818.10.2020 and 2818.10.2090 among others) for classification purposes.
U.S. Producers Filed and Won Industry Support
Saint-Gobain Ceramics & Plastics, Inc. filed the countervailing duty petition on November 25, 2024, and Commerce determined the petition had the required domestic industry support and initiated the CVD investigation. The period of investigation is January 1, 2023 through December 31, 2023.
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The U.S. Department of Commerce is starting an investigation into whether ceramic abrasive grains from China are being sold at unfairly low prices. This affects U.S. companies like Saint-Gobain Ceramics & Plastics, who want fair competition. If unfair pricing is found, import duties could be added starting January 6, 2025, which might change prices and trade rules.
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