'Rubbish' tariffs drive Australian company out of the US

Australia's only silicon manufacturer, Simcoa, announced it will withdraw from the US market on August 14, citing punitive tariffs imposed by the Trump administration. Vice-president David Miles stated the company has no alternative but to leave the US permanently.

The decision follows a ruling by the United States International Trade Commission (USITC) that found a US industry was being "materially injured" by silicon metal imports from Australia and Norway. The commission determined these products were subsidized by their respective governments and sold in the US at less than fair value, leading to the imposition of anti-dumping and countervailing duties.

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As of August the 14th we're finished, we're out of there. We will not be back to the United States.

Simcoa faces an additional tariff of approximately 40% on its exports to the US. A countervailing duty is an extra levy on imported goods to offset government subsidies for producers or exporters. However, Mr. Miles vehemently denied the allegations, calling the USITC's findings "absolute rubbish." He argued that US law is being "weaponized" by two domestic companies, neither of which are American, to exclude Simcoa from the market.

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It's absolute rubbish, because we're not. It's just the way that US law is interpreted and, effectively, US law in this particular case is being weaponised by two domestic companies, both of which are not American, to exclude us from … the American market.

"It's very disappointing because Simcoa has been very active in the United States for many, many years," Miles said. "We have fundamentally no choice. With this ruling we are now officially excluded from America. We have to re-look at our strategy, which does not include the United States, because we are now locked out for years."

Simcoa Operations Pty Ltd is a wholly-owned subsidiary of Japan's Shin-Etsu Chemical. Mr. Miles expressed doubt that the Australian government's efforts to contest the tariffs, despite a critical minerals agreement with the US, would yield positive results. The company is now exploring alternative markets in Southeast Asia and India.

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We have fundamentally no choice. With this ruling we are now officially excluded from America. We have to re-look at our strategy, which does not include the United States, because we are now locked out for years.