WASHINGTON — The U.S. Department of Commerce has issued a proposed rule to impose countervailing duties on countries that undervalue their currency relative to the dollar.
U.S. law defines a countervailable subsidy as a financial contribution from a government or public entity that provides a benefit to a foreign producer or importer of goods, Commerce said in a May 23 news release.
Deliberate undervaluation of national currencies constitutes a subsidy, the agency said.
"This change puts foreign exporters on notice that the Department of Commerce can countervail currency subsidies that harm U.S. industries," Commerce Secretary Wilbur Ross said in the news release. "Foreign nations would no longer be able to use currency policies to the disadvantage of American workers and businesses."
The proposed rule had not appeared in the Federal Register as of May 24.
The Department of Commerce currently maintains 481 antidumping and countervailing duty orders providing relief to U.S. companies and industries injured by unfair trade, the agency said.