The U.S. Commerce Department is imposing tariffs of about 260% on certain Chinese trailers after determining that the high level of imports harms domestic production, a move cheered by U.S. industry.

A ruling from the bipartisan International Trade Commission concluded that so-called “van-type trailers” were being “dumped” into the U.S. — imported at ultra-cheap prices that make it difficult for domestic manufacturers to compete. These trailers are typically used to transport cargo on the back of large vans and trucks.

The measures effective October 28 include anti-dumping and countervailing duties, according to a Federal Register notice. 

The American Trailer Manufacturers Coalition, a group of U.S. companies that petitioned for the ruling, estimates that 40% of van-type trailers in the U.S. were produced in China, Mexico or Canada. The tariffs will last for at least five years.

A preliminary ruling outlined the move months ago, just as the U.S. and China were in talks to extend a trade truce. After a leaders’ summit in September, Washington and Beijing agreed to hold off escalating tariffs on each other until January. 

A separate probe into Mexico and Canada’s trailer imports is expected to conclude in early 2027. 

Manufacturing Praise

Two decades ago there were about 20 different trailer manufacturers “and now that’s basically down to six with the foreign competition,” said Chris Hammond, executive vice president at trailer company Great Dane. “They have kind of systematically been picking them off year after year.”

U.S. manufacturers are already looking to capitalize on the move. Stoughton Trailers CEO Bob Wahlin said they plan to increase their U.S. workforce by 500 to 700 more people over the next six months. The company currently employs less than 2,000, Wahlin said.

Wisconsin-based Stoughton is also planning a $26 million capital investment, according to a person familiar with the company’s plans. That’s expected to create thousands of trailer manufacturing jobs, the person said.