The US Commerce Department recently announced a preliminary duty on the importation of drill pipe from China, an industry that generates over US$100 million annually. The move comes after findings that Chinese exporters of drill pipe have received countervailable subsidies of over fifteen percent. The department will make its final decision regarding the duty in August. In the interim, US Customs officials will collect a cash deposit or bond based on the preliminary rates.
¡°This protectionist move by the Obama administration has the potential to escalate trade disputes between the countries and may hurt US-China relations,¡± said Edward E. Lehman, Managing Director of Lehman, Lee & Xu.