US Commerce preliminary CVD determination on van-type trailers: 82.4-128.8% China, up to 62.7% Mexico; Canada terminated

Mechanism

This is the countervailing-duty (anti-subsidy) leg of the AD/CVD case brought by the American Trailer Manufacturers Coalition (Great Dane, Stoughton Trailers, Wabash National) against van-type trailer imports from Canada, China, and Mexico — companion to the antidumping investigation already on the register (2026-01-26-us-doc-van-type-trailers-canada-china-mexico-antidumping). Commerce formally initiated the CVD investigation on 2026-01-26 (Federal Register 2026-01457), alleging Chinese and Mexican producers benefit from countervailable government subsidies (China: case C-570-218; Mexico: C-201-868; Canada: C-122-876, investigation later terminated).

After a postponement of the preliminary-determination deadline (Federal Register, 2026-03-10) to no later than 130 days post-initiation, Commerce published its preliminary affirmative CVD determinations on 2026-06-05 in two separate Federal Register notices — one for China (2026-11350), one for Mexico (2026-11348). China's rate is set at 82.37% for the mandatory respondent (CIMC Baowell Industries / Qingdao CIMC Reefer Trailer) and as the all-others rate, with a 128.78% adverse-facts-available rate applied to non-responsive Chinese exporters. Mexico's cooperating respondents (Hyundai de Mexico, Utility Trailer Manufacturing de México) received rates of 1.90-1.95%, while five non-responsive Mexican companies (Commercializadora Nimmka, BRD Trailers, Gallegos Trailers, Industrias Kuzzy, Manufacturas Industriales Gami) received a 62.67% adverse-inference rate.

The Canada CVD investigation was terminated on 2026-05-27 after the petitioner withdrew that portion of the petition, so no Canadian duty applies under this action.

Downstream implications

• China's 82.37-128.78% CVD rate stacks on top of the companion 130.76%

preliminary antidumping rate on the same product, pushing combined AD+CVD exposure for Chinese van-type trailer exporters well above 200% ad valorem — effectively a market-closing rate.

• Mexico's low cooperating-respondent CVD rate (1.90-1.95%) contrasts sharply

with the 62.67% adverse-inference rate for non-cooperating Mexican exporters, creating a strong compliance incentive for Mexican producers to participate in Commerce's verification process.

• Watch for Commerce's final CVD determinations (2026-08-24 China,

2026-10-13 Mexico) and the ITC's final injury vote, which together determine whether permanent CVD orders issue and at what rates.

Open questions

• Whether the final CVD rates diverge materially from the preliminary rates

after verification and comment, particularly the adverse-inference rates applied to non-responsive companies.

• Combined AD+CVD effective rate on China once both cases reach final

determination — this action and its AD companion should be read together for total tariff exposure.