Based on a petition filed by four U.S.-based chemical companies, the United States announced an investigation in June 2017 into allegations that Thailand exporters were dumping certain merchandise and enjoying unfair subsidy benefits. The U.S. Department of Commerce (DOC) began investigations on January 1, 2016 for the Countervailing Duty (CVD) allegations and June 22, 2017 for the Anti-Dumping (AD) allegations.

Imports of citric acid and other citrate products generate millions in profit for Thai exporters.  Government figures are evidence of the huge profits that Thailand draws in through citric acid imports. In 2016, export value was placed at 1,863 million baht (49.9 USD million import value) and 2,255 million baht (73.2 USD million import value) in 2017. This will further increase in 2018 as estimated by Thailand’s Department of Foreign Trade.

The Trump administration has announced that the additional 25% and 10% tariffs on steel and aluminum are now in effect for the European Union (EU), Canada, and Mexico. The decision was made public yesterday, just hours before the temporary exemptions for the three parties were set to expire.

The exemptions were originally granted on a conditional basis as the United States negotiated certain trade topics with the EU, Canada, and Mexico. According to U.S. Commerce Secretary Wilbur Ross, there wasn’t enough progress made in the trade talks to warrant extended or permanent exemptions.