The United States halved the duty on Vietnamese plywood, while maintaining high rates for China and Indonesia

The United States halved the duty on Vietnamese plywood, while maintaining high rates for China and Indonesia

    The U.S. Department of Commerce has more than halved the final anti—dumping duty on Vietnamese hardwood plywood to 90.12%, while maintaining the Chinese rate at 187.27% and setting the duty for most Indonesian suppliers at 18.10%. The final decisions will take effect on July 21, 2026. Now their fate depends on a single vote from the U.S. International Trade Commission (ITC), which must make a decision by September 4. A positive decision will fix the fees for at least five years, while a negative decision will terminate the consideration of cases.

Vietnam: cooperation paid off with lower duties

    Vietnam has achieved a reduction in customs duties through active cooperation with the investigation. In June, the U.S. Department of Commerce reviewed sales and cost data from two Vietnamese manufacturers, Nhat Duy and Trieu Thai Son. After verification, the penalty preliminary rate of 196.14% was replaced with a calculated final margin of 90.12%.

The new rate now applies to the 52 listed Vietnamese exporters and to all other producers in the country.

Business impact: The required cash deposit at the border for a $100,000 cargo decreased from $196,140 to $90,120. This significantly eases the financial burden on Vietnamese exporters, who operate with a margin of only 5-6%.

China: refusal to cooperate led to maximum rates

    China has taken the opposite path. The two largest exporters, Linyi Evergreen Wood and Xuzhou Shelter, declined to respond to a questionnaire from the Ministry of Commerce. Nine smaller manufacturers ignored a separate request for supply data.

The result: The entire Chinese industry remained under the punitive rate of 187.27% set by the Ministry of Commerce based on the initial request, rather than any data provided by the companies themselves. In addition, a separate countervailing duty was introduced, which increased from a preliminary 81.34% to a final 88.96%.

Retroactive duties: The Ministry of Commerce determined that importers were rushing supplies before the start of the proceedings, and ordered a delay in the import of goods from December 2, 2025 (90 days before the preliminary decision). If the ITC confirms the damage, the total amount of duties for Chinese exporters will reach 274.92%.

Consequences: Trade has already decreased from 2 million cubic meters in 2016 to 52,800 cubic meters last year.

Indonesia: the lowest rates

    Indonesian producers showed the lowest rates among the three countries. Two companies considered separately by the Ministry of Commerce — PT Wijaya Cahaya Timber and PT Wijaya Triutama Hollywood Industri — received a rate of 15.40%. The rate of 18.10% is set for all other Indonesian exporters.

Subsidies: They range from 4.22% to 58.39%, depending on the company.
    The total amount of duties: For most shipments is about 58.93%, which is significantly lower than that of competitors.

Exception: One Indonesian company, PT Mustika Buana Sejahtera, refused to cooperate and received 84.94% on dumping and 128.66% on subsidies.

Supply decline: Shipments from Indonesia to the United States fell by 60% in the first quarter of 2026.

Key duty rates for hardwood plywood:

The coalition's position and the inconsistency of U.S. policy

Timothy Brightbill, a partner at Wiley Rein law firm, who heads the Coalition for Fair Trade in Hardwood Plywood (which includes Columbia Forest Products, Commonwealth Plastic, Manthei Wood Products, States Industries and Timber Products), called the reduction in duties for Vietnam "an important step towards leveling the playing field."

    The coalition initially requested fees of up to 474% when it applied in May 2025.

What's next? The ITC decision

    Both decisions (on anti-dumping and subsidies) have now been referred to the US International Trade Commission (ITC). The ITC heard closing arguments on July 16 and must make a decision by September 4, 2026 (within 45 days).

Two scenarios:

• - A positive decision will confirm the effect of duties for at least 5 years.
• - Negative decision — will terminate the consideration of cases and refund all deposits made since January.

Goods subject to duties

    The orders relate to the same goods as at the time the case was opened.:

•     - Hardwood plywood.
•     - Decorative plywood.
•     - Some veneered panels.

Does not apply to:

•     - Structural plywood, certified according to American building standards.
•     - Multi-layered wooden floor coverings (already regulated by separate orders for China).
•     - Ready-made furniture and kitchen cabinets.
•     - Countertops.
•     - Some details of doors and windows made of laminated veneer.

The key conclusion for the Chinese market

    The difference between China's rate (187.27% + 88.96% subsidies = 276.23% of total duties) and the rate currently paid by most Indonesian factories (about 58.93%) is 169.17 percentage points. This is the largest gap in the entire time of the case.

    For Chinese plywood manufacturers, this means that:

•     - Supplies to the United States will remain extremely limited.
•     - Competitiveness in the American market has been almost completely lost.
•     - The main sales markets will have to be found in other regions (Europe, the Middle East, Southeast Asia, Africa).
•     - The refusal to cooperate with the investigation led to the highest possible rates, which makes it extremely difficult to return to the American market, even in the medium term.

Result

    The decision of the US Department of Commerce created a three-tier system of duties on hardwood plywood: minimum for Indonesia (~58-59%), average for Vietnam (~90-132%, depending on the company) and maximum for China (up to 276%). The ITC's final decision in September will determine whether these duties will remain in effect for five years. For Chinese exporters, this means the need for a final reorientation to other markets, since it becomes economically impractical to return to the American market at such rates.

Tags: #USA #Vietnam #China #Indonesia #hardboard plywood #Anti-dumping duties #countervailing duties #Trade disputes #United States Ministry of Commerce #ITC