Presidential Determination on Wire Hanger Imports from the People's Republic of China

President Bush declined to impose import relief under Section 421 on Chinese steel wire garment hangers, finding tariffs would harm the national economic interest by disrupting domestic producers' adjustment strategies, shifting production to third countries, and raising costs for small dry-cleaning businesses. Instead, he directed Commerce and Labor to expedite Trade Adjustment Assistance applications from affected hanger producers and workers.

Federal Register Open PDF 68 FR 23019

Key directives

Decline import relief under Section 421 for Chinese wire hangers
Direct Secretary of Commerce and Secretary of Labor to expedite Trade Adjustment Assistance applications from domestic hanger producers or workers
Authorize USTR to publish memorandum in Federal Register

Who is ordered

Timeline

Immediate

Presidential determination not to impose Section 421 relief
Directive to Commerce and Labor to expedite TAA applications

Near term (90d)

Commerce and Labor consideration of pending TAA applications

Long term

Continued competition from Chinese imports in U.S. wire hanger market
Potential adjustment strategies by domestic producers

Risks & tensions

Section 421 designed as China-specific safeguard; determination that tariffs would shift production to third countries undermines tool's effectiveness
Tension between protecting petitioning domestic industry and avoiding harm to downstream small businesses (dry cleaners)
One major domestic producer's business model dependent on imported hangers creates intra-industry conflict over optimal policy
Domestic producers themselves driving import surge complicates case for relief