China’s Massive Van Trailer Duties Set to Become Permanent
Chinese-made van trailers are facing final U.S. trade duties that could significantly increase their cost after import. The trailers are subject to a 130% antidumping cash-deposit rate and a separate 135% countervailing duty rate.
Final duties target Chinese van trailers
The duties stem from allegations that Chinese manufacturers sold van trailers in the U.S. at unfairly low prices and benefited from government subsidies. The final antidumping rate is intended to address alleged price undercutting, while the countervailing duty applies to the subsidies identified in the trade case.
The 130% antidumping rate is well below the margins alleged by U.S. manufacturers during the investigation. Those allegations included dumping margins as high as 1,400%.
Higher costs expected for imported trailers
The new trade measures could make the bargain-priced van trailers seen in the U.S. market considerably more expensive. Importers will be required to post cash deposits tied to the applicable duties, increasing the financial burden associated with bringing the trailers into the country.
The changes are also expected to limit the availability of some Chinese-made van trailers as distributors and buyers adjust to the higher import costs.
Broader trade tensions continue
The trailer duties come amid broader trade disputes involving Chinese vehicles and automotive products. Other countries have taken different approaches to tariffs on Chinese-made vehicles and parts, but the U.S. measures on van trailers represent a substantial increase over normal import charges.
