The US Commerce Department is expected to find that US$550 million in imported Chinese aluminum was illegally subsidized by the Chinese government, the Wall Street Journal reported. The decision could lead to higher import duties as early as next week. The White House is concerned about the effect of Chinese exports on the tentative condition of the US economy. US imports surged 32.4% year-on-year in the second quarter while unemployment remains high: American aluminum manufacturers in particular continue to operate at low capacity and shed jobs. Canada and Australia have already claimed that China’s exports have hurt their economies, and Canada has already levied anti-dumping duties on Chinese aluminum. The Commerce Department’s decision would follow a successful case brought by the US steel industry last year, in which US steelmakers alleged that China dumped US$2.8 billion of illegally subsidized steel into the US market.
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