For the last six months, our large diameter welded pipe business has weathered great challenges in the face of increased trade barriers that combined have added a near-50 percent mark-up on our sales from Canada to the United States. Today, I am pleased to share with you that the U.S. Department of Commerce issued a determination that will provide at least some relief to ongoing trade-related difficulties our business faces.
In August 2018, following a petition filed by a coalition of U.S. pipe producers, the Commerce Department imposed a 24.38 percent anti-dumping duty on welded line pipe greater than 16-inch outside diameter exported from Canada into the United States. In its final determination issued today, Commerce affirmed the establishment of anti-dumping duties against several countries, including Canada, but established a 12.32 percent anti-dumping rate – half the previous rate – for EVRAZ North America large diameter welded pipe coming into the United States from Canada.
While we are encouraged by this announcement, other duties remain in place, including the Section 232 steel tariffs. For our large diameter welded pipe products, that 25 percent tariff on steel coming into the United States gets added onto the now-12.32 percent anti-dumping rate. An improvement, but still a significant premium our customers must pay.
I shared with you in August some of the steps we are taking to deal with the trade environment we find ourselves in, notably in dealings with our valued customers and as we engage political leaders in Washington and Ottawa. Those efforts continue as we work to push for the lifting of remaining tariffs negatively affecting our business. I’d particularly like to thank all of our colleagues who worked so hard on presenting our position to the Commerce Department, a cross-functional group pulling together sales, logistics and production data from across the company.
We have the highest-quality line pipe in the business and have significant opportunities for growth in the year ahead. Our business has gotten off to a strong start in 2019 and I am counting on all of you to focus on working safely as we improve our quality, increase our productivity and manage our costs all to meet the needs of our customers.