China Van Trailer Duties Set to Become Permanent
Chinese van-type trailers and related subassemblies now face final U.S. trade duties following affirmative determinations by the U.S. Department of Commerce and the U.S. International Trade Commission.
Final duties take effect
The final orders impose a 130% antidumping cash-deposit rate and a 135% countervailing duty rate on covered Chinese van trailers and subassemblies.
The antidumping duty addresses allegations that the products were sold in the United States at prices below fair value. The countervailing duty applies to benefits determined to have been provided to manufacturers by the Chinese government.
Rates below some allegations
Although the 130% antidumping rate is substantial, it is below the dumping margins alleged by some U.S. manufacturers during the trade case. Those allegations included margins as high as 1,400%.
The combined duties are expected to increase the cost of covered Chinese-made van trailers entering the U.S. market. The orders also could reduce the availability of lower-priced trailers supplied by Chinese manufacturers.
Industry impact
The final determinations conclude the Commerce Department and ITC proceedings that led to the trade orders. Importers of covered products will be required to provide cash deposits based on the applicable duty rates.
The orders apply specifically to van-type trailers and identified subassemblies from China. Their effect will depend on the scope of products covered and how importers adjust sourcing and pricing in response to the new duties.
