The US government has recently decided to impose high anti-dumping and countervailing duties on cheap disposable food containers from China and Vietnam, as regulatory agencies in the US have determined that these products are causing substantial harm to domestic industries and will be protected through tariff measures.
The latest ruling by the US International Trade Commission (USITC) indicated that thermoformed molded fiber products exported from China and Vietnam to the US are being sold at prices lower than fair value and are subsidized by the government, causing “substantial harm” to related industries in the US.
These products include disposable bowls, plates, cups, and take-out food containers, primarily made from natural fibers such as wood pulp and recycled materials, widely used in the food service sector.
USITC Chairman Amy A. Karpel, Commissioners David S. Johanson, and Jason E. Kearns unanimously voted in favor of initiating tariff procedures on the US side.
The final investigation results released by the US Department of Commerce in September this year showed that Chinese companies are generally engaged in dumping practices. Guangxi Firstpak Environmental Technology Co., Ltd. was found to be dumping at a rate of 49.08%, while several other enterprises like Zhejiang Zhongxin Group were dumping at rates as high as 214.73%. Non-cooperative Chinese companies face a China-wide entity dumping rate of up to 477.97%.
Regarding countervailing duties, Chinese companies received subsidies of up to 319.92%, mainly involving government support, preferential loans, and local subsidies.
In comparison, Vietnamese exporters had a lower dumping rate of only 4.58%, but non-cooperative entities faced a dumping rate of 260.56%; Vietnamese companies received subsidies ranging around 5.06%, but non-cooperative entities faced subsidy rates as high as 200.70%.
Following the final ruling by USITC, the US Department of Commerce is expected to formally issue anti-dumping (AD) and countervailing (CVD) duty orders within the coming weeks, with the related reports expected to be released on January 23rd next year.
Based on current data, some Chinese manufacturers could face composite tax rates exceeding 540%, with individual dumping rates surpassing 477%; while Vietnamese products could also face tariffs exceeding 260%. These tariffs, once enforced, are expected to be applicable for at least five years and are considered trade remedy measures implemented in accordance with the law, not subject to presidential discretion.
Furthermore, USITC has also approved retroactive duties on certain Vietnamese import products to warn importers against rushing shipments before the pending tariffs take effect.
According to data from the US Department of Commerce, in 2024, the US imported approximately $345 million worth of such products from China and around $24.02 million from Vietnam, with a growing trend year by year.
The case was filed by the “American Molded Fiber Coalition,” composed of US domestic companies including Genera and Tellus Products, jointly with the United Steelworkers union in 2024, accusing Chinese and Vietnamese companies of distorting market prices by relying on government subsidies and low-priced exports, causing serious impacts on US domestic production capacity.
Yohai Baisburd, the alliance’s representative lawyer, stated in an interview with Fox News that US enterprises are competitive under fair conditions but cannot compete against foreign governments violating trade rules through subsidies. He emphasized that the US is actively utilizing trade regulations to uphold fair competition.
According to data from the US Department of Commerce, up to now, the US has implemented anti-dumping or countervailing measures against 781 foreign goods, aiming to protect American businesses impacted by “unfair trade.”