en.Wedoany.com Reported - The U.S. Department of Commerce has preliminarily determined that the governments of China and Mexico have provided unfair subsidies to their van trailer industries. Based on this ruling, the U.S. intends to impose countervailing duties ranging from 82.3% to 128.7% on Chinese van trailers and 1.9% to 1.95% on Mexican van trailers. The American Trailer Manufacturers Coalition, composed of major U.S. trailer producers Great Dane LLC, Stoughton Trailers LLC, and Wabash Corporation, expressed support for the Commerce Department's preliminary tariff decision, viewing it as a first step toward introducing fair competition into the U.S. van trailer market. The coalition also looks forward to the Commerce Department's preliminary antidumping ruling expected later this summer.
The Commerce Department's ruling establishes the preliminary subsidy rates for this investigation. Approximately one week later, the Commerce Department will publish the preliminary determination in the Federal Register, subsequently instructing U.S. Customs and Border Protection to begin suspending liquidation and collecting preliminary duties in the form of cash deposits on entries of subject trailers from China and Mexico. At the coalition's request, the Commerce Department will not investigate Canadian subsidies but has indicated it will apply countervailing duties on Chinese trailers and components shipped through Canada to the United States.
This ruling is only a preliminary decision, and the Commerce Department will continue investigating several allegations that could lead to changes in the final duty rates. The final countervailing duty determination concerning China will be issued concurrently with the non-extended final antidumping determination for China, expected in August 2026. The final countervailing duty determination concerning Mexico will also be issued concurrently, expected in December 2026, in line with the extended antidumping timeline.
It should be noted that these rates apply only to the Commerce Department's countervailing duty investigation and do not yet include rates from the ongoing antidumping investigation on van trailers, which will be stacked on top of the preliminary subsidy rates. The Commerce Department's preliminary dumping determination for China will be publicly announced on June 9, while those for Canada and Mexico will be announced on July 30.
"When foreign governments subsidize exports, American companies and workers pay the price," said Robert E. DeFrancesco, trade counsel for the petitioners and a partner in the International Trade practice at Wiley LLP. "The Commerce Department's decision helps combat these unfair practices in Mexico and China. The Commerce Department recently found that Mexico's largest trailer producer also received subsidies for related products, while China's major trailer producer is part of a Chinese state-owned entity."
Duties imposed under this decision will be assessed against the importer of record for the goods. Evasion, absorption, and circumvention of duties are illegal, and U.S. Customs and Border Protection will closely monitor the situation in coordination with the Commerce Department.
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