US Department of Commerce Investigates Possible Circumvention of Duties on Steel Mesh from Mexico
The US Department of Commerce has officially launched a circumvention inquiry into the potential evasion of antidumping and countervailing duties on standard steel welded wire mesh imported from Mexico. This decision follows formal requests from a coalition of US companies, including Keysteel Corp., Mid-South Wire Company, National Wire LLC, Oklahoma Steel & Wire Co., and Wire Mesh Corp. These companies raised concerns that certain products, specifically low-carbon steel wire processed and completed in the US, might be circumventing the existing tariffs that apply to wire mesh from Mexico.
The inquiry will focus on steel wire that is produced in Mexico and subsequently shipped to the US, where it undergoes further processing into wire mesh. The DOC will investigate whether these operations qualify as circumvention of the antidumping and countervailing duties orders currently imposed on the importation of wire mesh from Mexico. These duties were originally established to counteract unfair trade practices such as price dumping and government subsidies that distort market conditions.
Timeline and Expected Outcomes
The DOC has set a timeline for the inquiry, with a preliminary circumvention determination expected within 150 days from the initiation notice, which was published on January 14, 2025. This timeframe gives the department a few months to investigate the relevant trade practices, gather information from both US and Mexican stakeholders, and assess whether circumvention is occurring. The preliminary determination will provide an initial finding, which could lead to further investigations or the imposition of additional tariffs on the products in question.
This inquiry could have significant implications for the steel and wire mesh industries, both in the US and Mexico. If the DOC determines that circumvention is taking place, it may result in the expansion of existing duties or the imposition of new tariffs on wire mesh products. Such actions would aim to level the playing field for US manufacturers and prevent the importation of unfairly priced or subsidized goods.
