The Trump administration will slap huge tariffs on Chinese cabinets coming into the country after the Commerce Department found Beijing has been dumping the product into the U.S. market.
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The Commerce Department found that China dumps wooden cabinets, but has not decided on the level of tariffs. They are considering a 39.25 percent tariff for some, and a 262.18 percent for the rest. The Commerce Department will make a final determination on or about February 17, 2020.
The U.S. imported $4.4 billion worth of wooden cabinets from China in 2018, according to the Commerce Department. Dumping occurs when a foreign company sells an imported product in the United States at below its fair value.
“The strict enforcement of U.S. trade law is a primary focus of the Trump Administration,” a press release said.
“Since the beginning of the current Administration, Commerce has initiated 182 new antidumping and countervailing duty investigations – a 231 percent increase from the comparable period in the previous administration.”
The American Coalition of Cabinet Distributors responded to the preliminary ruling saying, "It is important to understand that an affirmative finding does not in any way suggest that imports of RTA cabinets and vanities from China are causing injury to the made-to-order cabinet industry behind this petition. In fact, the U.S. cabinet industry overall is healthy and growing."
The coalition added that it will continue to "vigorously oppose this cynical trade petition on behalf of the tens of thousands of Americans directly employed in the innovative RTA industry as suppliers, distributors and installers."
Thursday's action is not considered an escalation of the trade war. The U.S. regularly imposes anti-dumping duties on Chinese goods. In May, the Commerce Department hit mattresses and stainless steel beer kegs with preliminary anti-dumping duties.
Trade talks between the U.S. and China are expected to resume next week in Washington.