Van trailer builder Wabash National (NYSE: WNC) may see relief on the horizon as the U.S. Commerce Department announced preliminary countervailing duties on imports of van-type trailers from China and Mexico, according to FreightWaves. The decision comes just as Wabash received another downgrade to its debt from S&P Global Ratings, which cut its rating to B- from B, matching Moody's earlier downgrade to B3 — the third reduction by that agency in a year.
Countervailing duties set for China and Mexico
In a pair of notices posted in the Federal Register last week, the Commerce Department determined that China and Mexico "unfairly subsidize their van-type trailer industries," according to the American Trailer Manufacturers Coalition (ATMC), which brought the complaint. The coalition comprises three companies: Wabash, Great Dane, and Stoughton Trailers.
The countervailing duties on Chinese exports range from 82.3% to 128.7%, depending on the exporter, with the highest rate applied to CIMC. For Mexican exporters, the duties are less than 2%.
| Country | Duty Range | Largest Exporter Rate |
|---|---|---|
| China | 82.3% – 128.7% | Applied to CIMC |
| Mexico | <2% | Varies by exporter |
These rates are preliminary; the investigation continues. The final determination for China is expected in mid-August, and for Mexico in mid-December.
Import surge and market impact
The ATMC estimates that about 40% of the U.S. van trailer market is supplied by China, Mexico, and Canada combined. Import data compiled by the coalition shows a sharp increase: the U.S. imported an annual average of 48,000 van trailers from 2015–2017, compared to 80,600 per year from 2022–2024.
"Trailer imports surged in the past few years with severe negative financial consequences for the domestic industry’s financial performance," a coalition spokesman said. "Trade action was necessary to stop the continuing harm to the domestic industry."
The original complaint also targeted Canada, but since Chinese subassemblies are sent to Canada for final assembly, the Commerce Department pulled those finished exports from Canada under the Chinese countervailing duties. With that decision, the coalition withdrew the Canadian portion of its request.
Next steps and enforcement
Effective immediately, U.S. Customs and Border Protection will require importers of finished and semi-finished vans to post cash deposits at the preliminary rates. The countervailing duties will be levied on top of Section 301 duties.
The International Trade Commission will conduct its own investigation to determine whether the domestic van industry has been injured by imports. That investigation is expected to be completed by mid-October and is considered likely to be the prevailing decision for all countries involved.
For Wabash, which has seen declining van output in recent years, the duties could help level the playing field against subsidized competition. The coalition, which had not filed any previous action on imports, sees this as a first step toward restoring fairness in the U.S. van-type trailer market.
Trade attorneys note that the process is ongoing, and the final rates could be higher or lower. The ATMC looks forward to the Commerce Department's antidumping preliminary determination later this summer.
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