Trump trade crackdown hits cheap food containers from China, Vietnam with massive new duties

"America continues to thrive when fair competition occurs," attorney Yohai Baisburd of Cassidy Levy Kent, counsel to the American Molded Fiber Coalition, told Fox News Digital Tuesday. "The Trump Administration is using every tool in the toolbox to enforce U.S. trade laws and cheaters beware because they are coming after you." 

Baisburd, whose legal background focuses on trade litigation, was reacting to the U.S. International Trade Commission (ITC) announcing recently that its board voted to rule that U.S. industry is materially injured by importing "thermoformed molded fiber products from China and Vietnam." Baisburd argued on behalf of U.S. companies as the International Trade Commission considered the case. 

Thermoformed molded fiber products are common food containers - including disposable bowls, plates, cups and containers for ready to make meals or take-out containers - made from natural fibers and recycled products, such as wood pulp. The fibers are turned to pulp before they're molded, and then shaped using heat and pressure. 

The U.S. market has been flooded with such products from China and Vietnam, with the nations "dumping" the containers at unfairly low prices that affect American businesses, according to the ITC. 

Following the vote from the ITC, the Commerce Department will issue final antidumping (AD) and countervailing (CVD) duty orders on those imports from China and Vietnam. Antidumping and countervailing duties are special trade penalties - in addition to typical tariffs - that the U.S. imposes on imports found to be unfairly underpriced in order to level the playing field for American companies.

The new orders are expected in the coming weeks, with ITC expected to release its report by Jan. 23. 

"The ITC vote will give the U.S. industry at least five years of duties on unfairly traded products from China and Vietnam," Baisburd said. "The ITC confirmed that the U.S. industry is severely injured by the corrosive impact of Chinese and Vietnamese imports. The ITC also authorized retroactive duties on Vietnamese imports.  This is only one of a handful of times they have done so in the past 25 years, sending a message to importers that they cannot surge into the U.S. market to try to get ahead of potential duties." 

Baisburd said the upcoming duties will "level the playing field" for U.S. industry against cheap imports. 

"U.S. workers/companies can compete against anyone, anywhere. What they can't do is outcompete Chinese and Vietnamese government subsidies that violate U.S. trade laws. The duties allow U.S. manufacturers to reinvest in their workers, operations, technology, because they can now compete on a level playing field," he said. 

The duty orders are separate from the Trump administration's tariffs on foreign nations, Fox News Digital learned. The tariffs are subject to change and negotiation, while the duties are legally binding trade enforcement mechanisms based on investigative findings by the U.S. Department of Commerce and International Trade Commission, and enforced by Border Patrol. The duties are applicable for the next five years minimum and are not subject to presidential discretion, Fox News Digital learned. 

Other presidential administrations have used antidumping and countervailing duties to level the playing field for U.S. companies, including the Biden administration touting in 2024 that it leveled more than 30 new antidumping and countervailing duties on steel-related products alone. 

Baisburd argued that the Trump administration broadened its tool chest for an all-encompassing approach to protecting U.S. manufacturing. 

The vote marks the third recent trade ruling that affects disposable food service containers. The U.S. Department of Commerce ITC issued antidumping and countervailing duties on disposable aluminum containers, pans, trays and lids imported from China and elsewhere, as well as leveling antidumping and countervailing duties on low-cost white paper plates from China, Thailand and Vietnam in March.