Risk from Section 301 Tariffs on Vietnam Over Currency Seen as 'Low-Medium'
Even though a Section 301 investigation on Vietnamese currency manipulation found there was cause to believe the practice is burdening U.S. business (see 2101150046), Crowell & Moring lawyer Michael Bowen said the firm does not assign much additional risk to…
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imports from Vietnam based on its currency practices. “Let’s call it ‘low-medium’ for now,” Bowen said in an email following up on a Feb. 17 Crowell & Moring webinar (see 2102170038). He said not only did the Office of the U.S. Trade Representative choose not to impose any tariffs in January at the time of its finding, it also “failed to signal any imminent measures in its notice.” Bowen also noted that the first time Commerce used currency undervaluation as a countervailable subsidy, on passenger tires, it was an average of 1.4% across the two companies under review. This “showed this may be more bark than bite for importers.”