Is the trailer half full or half empty? An investigation into whether van-type trailers assembled outside the U.S. unfairly impact domestic manufacturers—and how much—has come back with an early assessment that could hit China hard, slaps a couple of U.S.-based OEMs who build in Mexico on the wrist, and lets trailer builders in Canada largely off the hook. Final details, and reaction, are pending.
On June 5 the U.S. Department of Commerce, following up on a November petition by the American Trailer Manufacturers Coalition, published its preliminary finding that the governments of China and Mexico unfairly subsidize their van-type trailer industries.
Commerce calculated countervailing duties on imports for China that ranged from 82.3% to 128.7% for trailers from China. Responding brands CIMC Baowell Industries Co. Ltd. and Qingdao CIMC Reefer Trailer Co. Ltd. were assessed at the lower rate. The preliminary determination for imports from Mexico were 1.90% for Hyundai de Mexico S.A. de C.V. and 1.95% for Utility Trailer Manufacturing de México.
At the coalition's request, Commerce is no longer investigating Canadian subsidies, but the department has indicated it will apply the Chinese countervailing duties against Chinese trailers and subassemblies shipped to the U.S. through Canada.
The coalition—U.S. trailer producers Great Dane LLC, Stoughton Trailers LLC, and Wabash Corporation—applauded Commerce's decision to impose preliminary duties as “the first step towards introducing fairness in the U.S. van-type trailer market” and looks forward to Commerce's antidumping preliminary determination later this summer, according to a coalition statement.
"When foreign governments prop up exports, U.S. companies and workers pay the price," said Robert E. DeFrancesco, trade counsel to the petitioner and a partner in the International Trade Practice at Wiley. "The Commerce Department's decision helps counter these unfair practices in Mexico, where Commerce recently found that the largest producer also received subsidies for a related product, and China, where the primary trailer producer is part of a Chinese, state-owned entity."
This is a preliminary determination only, and commerce continues to investigate several allegations that may increase the rate for the final determination. The final countervailing duty determination regarding China will be aligned with the unextended China antidumping final determination, which is expected to be issued in August.
The final countervailing duty determination regarding Mexico is also aligned and is expected to be issued in December 2026, consistent with an extended antidumping timeline.
Of note, these duty rates are only for Commerce's countervailing duty investigation. They do not yet include the rates from the ongoing antidumping investigations of van-type trailers, which will be added to the preliminary subsidy rates.
Commerce's preliminary dumping determination for China will be publicly announced on June 9, while preliminary dumping determinations for Canada and Mexico will be publicly announced on due July 30.
See the upcoming print edition of Trailer | Body Builders for additional information and analysis.
About the Author
Kevin Jones
Editor
Kevin has served as editor-in-chief of Trailer/Body Builders magazine since 2017—just the third editor in the magazine’s 60 years. He is also editorial director for Endeavor Business Media’s Commercial Vehicle group, which includes FleetOwner, Bulk Transporter, Refrigerated Transporter, American Trucker, and Fleet Maintenance magazines and websites.
Working from Beaufort, S.C., Kevin has covered trucking and manufacturing for nearly 20 years. His writing and commentary about the trucking industry and, previously, business and government, has been recognized with numerous state, regional, and national journalism awards.