U.S. Slaps Up to 540％ Duties on Molded Fiber Imports from China and Vietnam

The U.S. government has stepped up trade enforcement against low-priced imports, concluding its anti-dumping (AD) and countervailing duty (CVD) investigations into thermoformed molded fiber products from China and Vietnam.

The final determinations impose exceptionally high duty rates, which are expected to significantly reshape the cost structure and trade dynamics for these products entering the U.S. market.

 

I. Final Determination: Material Injury to the U.S. Industry

The U.S. International Trade Commission (ITC) recently voted to issue an affirmative final determination, finding that imports of thermoformed molded fiber products from China and Vietnam caused material injury to the U.S. domestic industry in terms of both import volume and pricing effects.

Based on this finding, the U.S. Department of Commerce will issue formal AD and CVD orders, which are scheduled to take effect on January 23, 2026.

Notably, the ITC also authorized the rare application of retroactive duties on certain imports from Vietnam, meaning that some shipments previously exported to the United States may be subject to duty collection. Such retroactive enforcement has been highly uncommon in the past 25 years, underscoring the severity of this case.

 

II. Products Covered

The investigation covers single-use thermoformed molded fiber products for food-service applications, typically manufactured from plant-based materials such as sugarcane bagasse, bamboo fiber, or wheat straw, including but not limited to:

- Molded fiber plates and trays

- Molded fiber bowls and lids

- Molded fiber clamshell containers and similar food-service packaging

Excluded products:

- Paper or paperboard tableware, such as conventional paper cups and paperboard products, are not covered by the investigation.

Applicable HTSUS classifications:

- 4823.70.0020

- 4823.70.0040

 

III. Anti-Dumping and Countervailing Duty Rates

According to data released by the ITC and the U.S. Department of Commerce:

Exporting Country	Duty Levels
China	AD: 49.08%–477.97% CVD: 7.56%–319.92% Combined rates up to 540.63%
Vietnam	Combined AD/CVD duties up to 265.62% (exporter-specific)

 

 

 

 

 

 

 

 

 

IV. Investigation Timeline

- October 2024: AD/CVD investigations formally initiated

- Mid-2025: Preliminary determinations issued by the Department of Commerce

- September 2025: Final dumping margins and subsidy determinations announced

- December 2025: ITC issues final injury determination

Following affirmative findings by both the Department of Commerce and the ITC, the duty orders are expected to remain in effect for at least five years, subject to administrative and sunset reviews.

 

V. Market and Supply Chain Implications

Given the scale of the trade remedies imposed, the market is expected to experience:

- A sharp increase in landed costs for affected products entering the U.S.

- Accelerated supply chain shifts toward non-subject origins

- Heightened scrutiny over country-of-origin determinations, transshipment, and circumvention risks

- Reassessment of pricing strategies, contract terms, and long-term sourcing plans

Under the current enforcement environment, product scope, tariff classification, and origin documentation have become core cost and risk drivers, rather than routine back-office considerations.

 

VI. TPL Perspective

As trade regulation tightens and tariff-related uncertainty rises, companies involved in molded fiber product trade to the U.S. face increasing cost pressure and operational complexity.

With long-standing experience across China, Southeast Asia, and the United States, TPL supports customers through stable logistics execution, clear operational processes, and cross-regional coordination. By helping clients optimize shipment routes within a compliant framework, TPL works to reduce uncertainty and maintain business continuity—ensuring that every shipment remains visible, reliable, and controllable in an increasingly complex trade environment.