The U.S. Department of Commerce has published final antidumping (AD) and countervailing duty (CVD) orders targeting thermoformed molded fiber products imported from the People’s Republic of China and the Socialist Republic of Vietnam.
These orders impose steep duties — up to 540 percent for certain Chinese producers and up to 260 percent for Vietnamese producers — on sustainable, single-use packaging items including bowls, clamshells, plates, trays and other fiber-based food service products.
Scope and Rationale Behind the Duties
Thermoformed molded fiber products encompass a wide range of cellulose-based packaging items, formed under heat to create dense, eco-friendly containers often used in food service and retail packaging.
Commerce and the U.S. International Trade Commission (ITC) concluded that imports from China and Vietnam were being sold in the U.S. at less-than-fair value and benefitting from unfair government subsidies — findings that triggered the AD and CVD proceedings.
The affirmative injury determination by the USITC found that these imports caused material injury to the domestic molded fiber industry. That determination enabled Commerce to move forward with the publication of final duty orders on January 27, 2026.
Tariff Rates and Duration
The finalized antidumping and countervailing duties will apply for at least five years and stack on top of existing tariffs. In practical terms, duties can reach:
- Up to 540 percent for certain Chinese exporters,
- Up to 260 percent for certain Vietnamese exporters, depending on company-specific determinations.
These rates reflect calculated dumping margins and subsidy offsets identified during the multi-year investigation process that began with petitions filed by U.S. molded fiber manufacturers and labor unions in 2024.
Industry and Supply Chain Implications
For U.S. supply chain and packaging sectors, the duties are intended to level the competitive environment by removing artificially low-priced imports that undercut domestic production. The American Molded Fiber Coalition — representing U.S. producers — has welcomed the duty orders as a key step toward strengthening domestic competitiveness and supporting jobs in fiber packaging manufacturing.
The scope of products affected includes sustainable single-use items that have seen rising demand amid shifts toward biodegradable packaging solutions. Domestic producers now face what supporters describe as a fairer market landscape, though some importers and supply chain stakeholders may confront higher input costs or seek alternative sourcing strategies.
Broader Trade and Compliance Context
This action fits within a broader U.S. trade remedies framework that uses antidumping and subsidy laws to counteract unfair trade practices. The combined AD/CVD orders follow extensive preliminary and final determinations by both Commerce and the ITC, including affirmative findings that domestic industries were materially injured by the flood of subsidized, low-priced imports.
Businesses tied to foodservice packaging, retail fulfillment, and supply chain logistics should monitor how enforcement unfolds, especially as U.S. Customs and Border Protection implements the duty orders at ports of entry. Duty liabilities on unliquidated entries — including retroactive assessments tied to critical circumstances findings — may also emerge depending on import timing and legal interpretations.
The finalization of hefty antidumping and countervailing duties on thermoformed molded fiber products from China and Vietnam marks a significant development in U.S. trade enforcement and supply chain policy.
With substantial tariff rates now in place, domestic fiber packaging producers should gain competitive relief, while importers and global suppliers will need to adapt sourcing, pricing, and compliance strategies to navigate the new trade environment.
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