U.S. COMMERCE DEPARTMENT ISSUES PRELIMINARY DECISION ON TURKISH BRAKE DRUM SUBSIDIES

On December 06, 2024, the U.S. Department of Commerce announced a preliminary affirmative determination in the Countervailing Duty (CVD) investigation concerning certain brake drums imported from the Republic of Türkiye as per The Brake Report.

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The initial findings indicate that Turkish producers and exporters received countervailable subsidies during the period from January 01 to December 31, 2023. This development marks a significant step in the ongoing trade investigation aimed at ensuring fair competition within the U.S. automotive industry.

➤ Background of the Investigation

The investigation was initiated on July 10, 2024, following petitions filed by Webb Wheel Products, Inc., a U.S. manufacturer of brake drums. The petitions alleged that brake drums from Türkiye and the People's Republic of China were being subsidised and sold in the U.S. at less than fair value, causing material injury to the domestic industry. Consequently, the Department of Commerce launched both AntiDumping (AD) and countervailing duty investigations to assess these claims.

➤ Scope of the Investigation

The products under investigation are certain brake drums made of gray cast iron, with inside diameters ranging from 14.75 inches to 16.6 inches and weighing more than 50 pounds. This includes both finished and unfinished brake drums, whether imported individually or as part of an assembly. Notably, composite brake drums containing more than 40 per cent steel by weight are excluded from this investigation.

➤ Preliminary Findings