US chassis makers seek duties on imports from Mexico, Thailand, and Vietnam

The US Chassis Manufacturers Coalition, which includes Cheetah Chassis Corp. and Stoughton Trailers, says these imports are causing severe damage to the domestic industry.

Their petition, filed with Commerce and the International Trade Commission, argues these imports threaten the industry’s survival and US supply chains.

“Without relief, US chassis manufacturers will be forced to shutter production, and the industry will collapse,” the coalition warned in the petition.

The coalition alleges that chassis from Mexico, Thailand, and Vietnam are being sold at unfairly low prices, with Mexican and Thai manufacturers also accused of benefiting from additional government subsidies.

The estimated dumping margins are substantial, making it difficult for US manufacturers to compete, the petition claims. It estimates dumping margins of 32.37% for Mexico, 234.06% for Thailand, and 304.68% for Vietnam.

Despite strong demand for chassis in recent years, US producers have struggled due to a flood of underpriced imports, according to the petition. The result has been falling sales, declining profits, and reduced factory operations.

The petition says imports from these countries have surged in recent years, far exceeding US market demand. In 2022, for example, imported chassis outnumbered actual registrations, showing the degree of oversupply.

Companies in Thailand, Vietnam, and Mexico have expanded production specifically to target the US market, further intensifying pressure on domestic producers.

The coalition warns that if the government does not intervene, the US chassis industry will continue to suffer. Many manufacturers have already reduced production and laid off workers. With a potential economic slowdown on the horizon, the presence of cheap foreign imports could be even more damaging.

Commerce said this week it is initiating the anti-dumping and countervailing duty (AD/CVD) investigations brought by the Coalition. The ITC will issue its preliminary injury determination by April 14. If affirmative, the case moves forward, and Commerce will issue preliminary subsidy margins by May 22 and prelim dumping rates by Aug. 5.