The U.S. International Trade Commission (ITC) announced that its board voted to rule that U.S. industry is materially injured by importing "thermoformed molded fiber products from China and Vietnam." (John Keeble/Getty Images)
The U.S. market has been flooded with such products from China and Vietnam, with the nations "dumping" the containers at unfairly low prices that affect American businesses, according to the United States International Trade Commission.
Following the vote from the ITC, the Commerce Department will issue final antidumping (AD) and countervailing (CVD) duty orders on those imports from China and Vietnam. Antidumping and countervailing duties are special trade penalties — in addition to typical tariffs — that the U.S. imposes on imports found to be unfairly underpriced in order to level the playing field for American companies.
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The new orders are expected in the coming weeks, with ITC expected to release its report by Jan. 23.
The duties will include an upward of 540% tax on certain Chinese producers — including a 477%-plus tax for "dumping" alone — and a 260%-plus tax on Vietnamese producers of the thermoformed molded fiber packaging products, ITC data shows.
"The ITC vote will give the U.S. industry at least five years of duties on unfairly traded products from China and Vietnam," Baisburd said. "The ITC confirmed that the U.S. industry is severely injured by the corrosive impact of Chinese and Vietnamese imports. The ITC also authorized retroactive duties on Vietnamese imports. This is only one of a handful of times they have done so in the past 25 years sending a message to importers that they cannot surge into the U.S. market to try to get ahead of potential duties."
Shipping containers are seen at the container terminal of the port of Oakland, California. Trade and tariffs have been a cornerstone of President Donald Trump's second administration. (Carlos Barria/Reuters)
In addition to business concerns about the Asian nations boxing out the U.S. market for food service containers, health concerns also have simmered. China and Vietnam have been identified as nations that produce containers with "forever chemicals," or per- and polyfluoroalkyl substances (PFAs). An ITC report published in 2024 found that while some foreign nations claim products are PFAs-free, studies indicate that it is not always true, while the U.S. "generally produces PFA-free products."
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The vote marks the third recent trade ruling that affects disposable food service containers. The U.S. Department of Commerce ITC issued antidumping and countervailing duties on disposable aluminum containers, pans, trays and lids imported from China and elsewhere, as well as leveling antidumping and countervailing duties on low-cost white paper plates from China, Thailand and Vietnam in March.
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