April at-a-glance … taxes, tariffs & trade
Higher corporate tax rate proposed to pay for intrastructure plan
President Biden announced his intent to introduce the Made in America Tax Plan to pay for The American Jobs Plan infrastructure initiative. Key provisions of the Tax Plan referenced by President Biden are an increAct Aluminum sheet manufacturers in 18 countries to be imposed anti-fair-trade dutiesase in the corporate tax rate from 21 percent to 28 percent, an increase in the minimum tax, and rollbacks of other provisions of the 2017 Tax Cuts & Jobs. NAFEM will provide additional details as they are available.
Aluminum sheet manufacturers in 18 countries to be imposed anti-fair-trade duties
The U.S. Department of Commerce (Commerce) announced affirmative final determinations in the anti-dumping and countervailing duty investigations on common alloy aluminum sheet from 18 countries. Commerce determined that these countries have priced their products in the U.S. market below the cost of production or below prices in their home markets. Additionally, the U.S. International Trade Commission (ITC) has determined that U.S. industry is materially injured as a result of these actions. Therefore, Commerce has the authority to impose duties on these imports in the amount of the confirmed dumping and/or unfair subsidizations that range from 2% on Turkish imports to 242.80% on those from Germany.
Countries include Bahrain, Brazil, Croatia, Egypt, Germany, Greece, India, Indonesia, Italy, Oman, Romania, Serbia, Slovenia, South Africa, South Korea, Spain, Taiwan and Turkey. Preliminary countervailing duty determinations are due on or about June 3; preliminary anti-dumping duty determinations are due on or about Aug. 17. Commerce called this “the broadest U.S. trade enforcement action in two decades,” covering over $2 billion in trade in 2019.
China/Iran sign 25-year trade and infrastructure agreement
China and Iran signed a 25-year strategic partnership agreement in late March that includes Chinese investments in Iran’s energy and infrstructure sectors. It brings Iran into China’s Belt and Road Initiaitve, a multi-trillion-dollar infrastructure project that is planned to stretch from East Asia to Europe. China also will provide Iran with COVID-10 vaccines. Iranian Foreign Ministry Spokeperson Saeed Khatibzadeh called the agreement a “road map” for trade and economic and transportation cooperation, with a special focus on both countries’ private sectors. When asked about the agreement, President Biden says it is something he’s “been concerned about for years.”