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Commerce Backs Duties on Chinese, Mexican Van Trailers
Great Dane, Stoughton, Wabash Withdraw Canadian CVD Complaint
Key Takeaways:
- Commerce proposed countervailing duties of up to 128.7% on Chinese trailers and up to 62.67% on Mexican imports after finding subsidies.
- U.S. manufacturers initiated the case and praised the ruling while urging action on dumping allegations in a separate investigation.
- Canadian producers were dropped from the subsidy complaint but remain under active antidumping investigation.
The Department of Commerce recommended levies be imposed on dry and refrigerated van trailers and subassemblies imported from China and Mexico after a countervailing duty investigation found the two nations subsidized manufacturers.
In a June 2 preliminary affirmative determination, Commerce recommended countervailing duties ranging from 82.3% to 128.7% for trailers from China and 1.9% to 62.67% for trailers from Mexico.
The investigation followed a November petition from a coalition of U.S.-based trailer manufacturers comprising Great Dane, Stoughton Trailers and Wabash.
The petitioners initially sought a determination on whether subsidies were being provided by the governments of China, Mexico and Canada.
But in an 11th-hour about-face, the coalition on May 27 withdrew its countervailing complaint against Canadian manufacturers.
A concurrent Commerce investigation into dumping allegations is expected to produce a preliminary determination as early as June 9 against Chinese manufacturers and in subsequent weeks concerning Mexican and Canadian trailer makers.
The antidumping investigation into Canadian trailer makers remains active.
The three Canadian original equipment manufacturers potentially under scrutiny are Di-Mond Sales, Manac Inc. and CIMC Refrigerated Trailer Co.
Commerce, meanwhile, may alter its subsidy rates in the countervailing investigation.
A final countervailing duty determination on Chinese exporters is expected to be issued in August and will be aligned with the final antidumping determination, according to lawyers representing the coalition. The final countervailing duty determination on imports of Mexican trailers is expected to be issued in December 2026.
The periods under scrutiny in any investigations are Oct. 1, 2024, through Sept. 30, 2025, for Canada and Mexico, and April 1 through Sept. 30, 2025, for China.
CVD Determination 'a Milestone'
Senior executives with members of the coalition not surprisingly applauded the determination.
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Yeagy
“Foreign producers benefiting from significant subsidies have distorted the U.S. market and undermined fair trade, a fact corroborated by this determination,” Brent Yeagy, president and CEO of Wabash, told Transport Topics in a June 4 email.
“These foreign producers have also engaged in extensive dumping, another major factor driving this surge of imports. As we look ahead to Commerce’s preliminary antidumping determinations, we are hopeful to see continued recognition of the unfair trade that has injured the domestic trailer industry,” he added.
“Dumping” refers to flooding a market with goods and products to drive down prices.
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Stoughton Trailer CEO Bob Wahlin called the countervailing duty determination "an important milestone for the U.S. trailer industry." (Stoughton Trailer via YouTube)
“We are pleased with Commerce’s preliminary countervailing duty determination — it is an important milestone for the U.S. trailer industry,” Stoughton CEO Bob Wahlin noted in a June 3 email to TT. “We are encouraged by the recent CVD ruling, but the job is not finished. Dumping by foreign producers has also played a major role in the surge of imports.”
Antidumping Rates Sought
- Canada: 223.13% to 297.26%
- Mexico: 209.47% to 431.89%
- China: 362.65% to 1,363.25%
Commerce weighs allegations of dumping and subsidization, while the International Trade Commission investigates whether the domestic trailer industry has been injured or faces injury because of the alleged behavior.
ITC issued an affirmative preliminary injury determination in February.
Dumping Determination Still to Come
A total of 11 Mexican manufacturers could be affected by the duties, including affiliates of trailer majors Fruehauf, Hyundai Translead and Utility Trailer Manufacturing.
After the June 2 preliminary determination, Utility President and Chief Operating Officer Steve Bennett told TT that the coalition’s argument that dry van and refrigerated trailers are interchangeable was inaccurate.
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Bennett
Bennett also questioned the coalition’s decision to use the country of Turkey as the benchmark for normalized earnings in the case.
When the petition was originally filed, Bennett told Commerce and the ITC that the complaint had the potential to exacerbate the existing market downturn.
Utility — a mandatory respondent to the case — operates dry van manufacturing facilities in Arkansas and Virginia, refrigerated trailer manufacturing facilities in Utah, Virginia and Piedras Negras, Mexico, and produces flatbeds in Alabama.
Hyundai Translead declined to comment. Fruehauf was not immediately available for comment.
Data shows U.S. dry van and refrigerated trailer imports from the three targeted countries totaled 72,333 units in 2023, 48,751 trailers in 2024 and 21,082 in the first half of 2025.
Imports from Mexico totaled 71,657 trailers in 2023, 47,441 units in 2024 and 20,060 in the first six months of 2025.
