U.S. Department of Commerce Finds Dumping and Countervailable Subsidization Of Vertical Shaft Engines From China

Today, the U.S. Department of Commerce announced affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of vertical shaft engines between 225cc and 999cc and parts thereof (large vertical shaft engines) from China. 

Commerce determined that exporters have dumped large vertical shaft engines in the United States at margins ranging from 177.65 percent to 468.33 percent. In addition, Commerce determined that exporters received countervailable subsidies at rates ranging from 17.75 percent to 19.29 percent.

In 2019, imports of large vertical shaft engines from China were valued at an estimated $45.1 million. 

The petitioner is the Coalition of American Vertical Engine Producers, whose members are Kohler Co. (Kohler, WI) and Briggs & Stratton Corporation (Wauwatosa, WI).

The U.S. International Trade Commission (ITC) is currently scheduled to make its final injury determinations on or about February 18, 2021. If the ITC makes affirmative final injury determinations, Commerce will issue AD and CVD orders on imports from China. If the ITC makes negative final determinations of injury, the investigations will be terminated, and no orders will be issued.

Read the fact sheet on today’s decision(s).

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current administration, Commerce has initiated 306 new AD and CVD investigations – a 278 percent increase from the comparable period in the previous administration.

The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing of imports into the United States. Commerce currently maintains 542 AD and CVD orders that provide relief to American companies and industries impacted by unfair trade.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based on factual evidence provided on the record.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to CVD duties aimed at directly countering those subsidies.