#United States #Washington #Hardwood Plywood #U.S. Commerce #countervailing duty

U.S. Commerce Department Issues Countervailing Duties on Plywood Imports

On January 16, 2026, the U.S. Department of Commerce made a significant announcement regarding hardwood and decorative plywood imports. The agency issued preliminary affirmative countervailing duty findings aimed at addressing alleged unfair trade practices by the governments of China, Indonesia, and Vietnam. This decision marks a pivotal moment for the American hardwood and decorative plywood industry, which has faced challenges due to subsidized imports.

Preliminary Duty Rates Announced

The Commerce department has set the following preliminary duty rates:

• - China: 81.34%
• - Indonesia: Ranges from 2.40% to 128.66%
• - Vietnam: Ranges from 4.37% to 26.75%

These rates are a response to the substantial subsidies provided by these countries to their plywood industries, which officials believe have been detrimental to U.S. manufacturers. The Coalition for Fair Trade in Hardwood Plywood, representing a large portion of the domestic market, has praised this move as essential for ensuring fair competition.

Coalition's Response

Timothy C. Brightbill, lead counsel for the Coalition, stated that the decision by the Department of Commerce represents a critical step towards balancing the market for American manufacturers. He remarked, "The domestic hardwood and decorative plywood industry has been harmed for decades by unfairly traded imports from China, Indonesia, and Vietnam. This decision helps level the playing field for our manufacturers." This viewpoint highlights the ongoing concerns within the industry regarding the impact of foreign subsidies on local businesses.

Steps Forward: Customs and Border Protection Response

Following the Commerce Department's findings, the U.S. Customs and Border Protection (CBP) will begin enforcing these preliminary duties. This includes collecting the newly imposed tariffs on plywood entries from the three specified countries. Notably, the investigation also determined the existence of critical circumstances, meaning duties will also be collected retroactively on imports from China that entered 90 days prior to the preliminary determination’s publication.

Ongoing Investigations and Future Outlook

The investigations by the Commerce Department are set to continue over the ensuing months. They will delve deeper into the subsidy programs alleged for the industries in China, Indonesia, and Vietnam. A final determination is expected in early May 2026, which will solidify these preliminary findings or adjust the rates based on further evidence.

Additionally, anti-dumping duty allegations against hardwood and decorative plywood from these countries are simultaneously under review, with preliminary rates expected in late February 2026. The ongoing scrutiny aims to enforce U.S. trade laws and ensure that domestic prices are not unfairly impacted by external subsidies.

Legal and Regulatory Implications

The new duties will be assessed against the importer of record for the affected merchandise. Importantly, any instances of duty evasion or schemes designed to circumvent these regulations will be closely monitored by CBP and the Commerce Department. The Coalition's legal team is actively coordinating with regulators to address these potential violations, which could lead to stricter enforcement measures.

Conclusion

This decisive action from the U.S. Commerce Department underscores its commitment to upholding fair trade practices and supporting domestic industry. As the situation unfolds with final determinations and ongoing investigations, stakeholders in the hardwood and decorative plywood industry will be closely watching to see how these developments affect the market landscape in the United States.