Skip to content

Clark Hill Helps Automotive Supplier Avoid Costly Tariffs

November 5, 2024

Kelsey Christensen, Mark Ludwikowski, and Sally Alghazali successfully represented automotive supplier MAHLE before the U.S. International Trade Commission.

As a result, MAHLE’s importing of aluminum extrusions from 14 countries to be used in automotive parts will not face tariffs in excess of 300% upon shipment to the U.S., resulting in millions of dollars in savings.

“This would have impacted many of MAHLE’s imports for sale to its OEM customers, so we’re thrilled to get such a significant victory,” Christensen said.

MAHLE purchases aluminum extrusions and manufactures them into automotive parts for OEMs in the U.S. and globally. Many of its automotive part imports contain aluminum extrusions that could have become subject to additional tariffs.

Clark Hill’s trio of international trade attorneys represented MAHLE from the outset of the case about a year ago. Before the USITC, they successfully argued that MAHLE’s imports are not hurting US companies.

“One of the points we argued is that these imports are not aluminum extrusions but auto parts instead. They’re not competing for sale in the United States with the aluminum pieces. They’re competing for sales against other auto part producers,” Christensen said.

MAHLE’s victory represents a rare win for a respondent before the USITC. Over the past five years, petitioners have succeeded in having 86% of antidumping (AD) and countervailing duty (CVD) investigations result in orders.

“This was a tremendous group effort to argue MAHLE’s case before the USITC and the Department of Commerce,” Ludwikowski said. “The scope of this case was broader than most, but our experience of arguing before both agencies helped us prove MAHLE’s position.”

Subscribe for the latest

Subscribe

Related

Event

Clark Hill's Commercial Real Estate Symposium – Dallas, Texas

Join Clark Hill’s Commercial Real Estate attorneys and industry professionals for a timely and dynamic program in Dallas, focusing on the latest challenges and top trends in the CRE industry.

Explore more
Legal Updates

What Is Likely the Weakest Provision in Your Multi-State Lease?

Using one eminent domain lease clause across states risks lost value. Learn how state laws should reflect notice and just compensation for better protection.

Explore more
Legal Updates

Critical Risk Mitigation Provisions for Design Contracts — Part 1: Waiver of Consequential Damages

An essential element of architect and engineer contracts with their clients is the treatment of risk sharing between the parties. Design professionals who are typically simply providing services for a fee, and who are not investors who will share in the profits of a successful project, can ill-afford to expose themselves to unlimited liability for negligent errors and omissions in the performance of their services. Architects and engineers would argue that it is fundamentally unfair to expose them to unlimited downside risk when they do not directly participate in the upside profit potential of the projects they design. Owners and developers would counter that this is why design professionals carry professional liability insurance. But even simple design errors can lead to liability that is many times greater than the amount of such insurance.

Explore more