U.S. Commerce Department Addresses Subsidies on Imported Chassis from Mexico and Thailand

U.S. Department of Commerce's Preliminary Findings on Chassis Subsidies

On July 29, 2025, the U.S. Department of Commerce made significant announcements concerning the chassis industry, revealing that both Mexico and Thailand provide subsidies to their respective chassis manufacturers. This move is critical for U.S. interests as it aims to protect domestic production from the harmful effects of subsidized imports.

The Department disclosed affirmative preliminary countervailing duty rates of 133.18% on imports from Mexico, while rates from Thailand vary based on the producer, ranging from 2.24% to 9.42%. This announcement was met with appreciation from the U.S. Chassis Manufacturers Coalition, which includes major players like Stoughton Trailers and Cheetah Chassis Corporation. The coalition emphasized the importance of these duties for sustaining American manufacturers and safeguarding jobs.

Chassis play a pivotal role in the U.S. supply chains; however, the domestic production has been adversely affected by unfair trade practices from countries like China, and now, increasingly from Mexico and Thailand. The preliminary announcement regarding countervailing duties is just a portion of the larger investigation into these subsidies, a protective measure designed to bolster American industry and workforce.

Following the preliminary findings set to be published in the Federal Register within a week, the Commerce Department will instruct U.S. Customs and Border Protection to start collecting these preliminary duties as cash deposits on entries of chassis and chassis subassemblies from the affected countries. It's crucial to note that these determinations are not final; subsidy rates may alter as further investigations unfold, which include new allegations regarding subsidy practices and creditworthiness that could lead to increased rates.

The final determination from the Commerce Department is anticipated towards the end of November 2025, although this timeline may adjust in relation to ongoing antidumping investigations. It's important to clarify that the stated duties are strictly related to countervailing duties and do not yet encompass the antidumping rates expected from investigations involving chassis from Mexico, Thailand, and Vietnam – which will be revealed in late September 2025.

Trade counsel Robert E. DeFrancesco, representing the petitioners, remarked that this initial decision marks an essential step towards correcting the injuries caused to the U.S. chassis industry. He highlighted the acknowledgment by the Commerce Department of the substantial support foreign governments extend to their chassis producers, mentioning a particular Thai company connected to a Chinese state-owned entity.

The imposed duties will target the importer of record for the merchandise, effectively making duty evasion, absorption, and circumvention illegal. U.S. Customs and Border Protection, in concert with the Commerce Department, will closely monitor these activities to ensure compliance and uphold fair trade practices.

In summary, the U.S. Department of Commerce's recent findings signal a proactive approach to tackling unfair subsidies affecting the chassis market. As investigations continue, U.S. manufacturers await the outcomes that promise to remedy the competition faced from subsidized imports, ultimately aiming to restore balance in the American chassis industry.