U.S. Triples Duties on Top Chinese Equipment Maker to Aid Home Industry

WASHINGTON, D.C. – December 18, 2025 – The U.S. Department of Commerce (DOC) has finalized a decision that significantly escalates the financial barriers for a major Chinese manufacturer of mobile access equipment (MAE), a move celebrated by American industrial giants as a crucial step toward leveling the competitive landscape. In its final results for the 2022 administrative review, the DOC nearly tripled the countervailing duty (CVD) rate for Zhejiang Dingli Machinery Co., Ltd., the largest U.S. source of Chinese-made aerial lifts and work platforms.

The ruling increases Dingli’s CVD rate from 11.97% to a substantial 32.26%. When combined with existing antidumping duties and broad-based Section 301 tariffs, the total duties on the company's imports now reach a staggering 69.65%. This decision marks a significant victory for the Coalition of American Manufacturers of Mobile Access Equipment, which includes industry leaders JLG Industries, Inc. and Terex Corporation, who have long argued that unfair Chinese government subsidies undermine U.S. production and jobs.

A Hard-Fought Victory for U.S. Manufacturers

The decision is the culmination of the first completed administrative review of the CVD order on Chinese MAE, which was originally put in place in December 2021. Countervailing duties are specifically designed to offset the benefits that foreign producers receive from government subsidies, which allow them to sell goods at artificially low prices in export markets. The Commerce Department's investigation uncovered new subsidy programs that were not factored into the original rate.

A key driver behind the sharp increase in duties was the DOC's finding that the Chinese government provided several essential inputs to MAE producers for "less than adequate remuneration." This practice effectively lowers the production costs for companies like Dingli, giving them an unfair advantage over competitors who must pay market rates for their raw materials and components.

The Coalition of American Manufacturers of Mobile Access Equipment praised the ruling as a necessary enforcement action. "This is a positive result for the domestic mobile access equipment industry, recognizing the substantial subsidies that are provided to Chinese producers," said Timothy C. Brightbill, counsel to the Coalition and a partner at Wiley Rein LLP. "We appreciate the Commerce Department's hard work. This high CVD rate better reflects the amount of subsidization that is occurring and will help U.S. producers compete on a level playing field in the United States."

For domestic producers JLG and Terex, the ruling provides a much-needed shield against what they see as state-sponsored price undercutting, potentially bolstering their market share and supporting domestic manufacturing operations.

Chinese Giant Dingli Faces Steep New Barriers

The financial repercussions for Zhejiang Dingli Machinery are immediate and severe. As the most significant Chinese supplier of MAE to the United States—a market that accounted for an estimated 18% of its total revenue in 2023 and was projected to grow—the compounded tariffs present a formidable challenge to its business model. The 69.65% tariff stack makes its products significantly more expensive for American importers and end-users.

However, Dingli has been preparing for such trade headwinds. The company has experience navigating previous trade disputes and has stated its intention to adjust its strategy in response to changing tax rates. In a notable strategic move, Dingli completed the acquisition of American manufacturer CMEC in 2024 and maintains inventory in U.S. warehouses, which could help cushion the blow and facilitate continued market access. Industry analysts also note that Dingli may explore expanding its manufacturing footprint within the U.S. to bypass the steep import duties, though such an investment would require significant time and capital.

Nonetheless, the ruling places Dingli and other Chinese producers in a precarious position. The DOC's notice highlights that other Chinese MAE manufacturers face even higher combined antidumping and countervailing duty rates, some soaring as high as 165.30%. This underscores a broad and aggressive U.S. trade policy aimed at curbing subsidized imports from China in this sector.

Ruling Amplifies Broader U.S.-China Economic Tensions

This specific trade case does not exist in a vacuum. It is the latest development in the protracted and often contentious economic rivalry between the United States and China. The Biden-Harris administration has continued and, in some cases, expanded the use of tariffs initiated in 2018, particularly under Section 301, to combat what it deems China's "unfair, non-market practices."

Washington has repeatedly voiced concerns over China's extensive industrial policies, which leverage state subsidies, cheap financing, and other government support to create global champions in key sectors. U.S. officials argue these policies lead to massive overcapacity, flooding global markets with low-priced goods in industries ranging from steel and solar panels to electric vehicles and, in this case, mobile access equipment. This ruling is a direct application of U.S. trade law intended to counteract those specific practices.

The decision serves as both a practical measure to protect a domestic industry and a symbolic gesture reinforcing the U.S. commitment to aggressive trade enforcement. While periods of de-escalation and tariff exclusions have occurred, the overarching trend remains one of protectionism and strategic competition, with both nations using economic tools to protect their industries and achieve geopolitical objectives.

Higher Costs Loom for Construction and Rental Industries

While American manufacturers celebrate the ruling, the impact will be felt downstream by the U.S. companies that purchase and use the equipment. The construction and equipment rental industries, major consumers of MAE, are now facing the prospect of significantly higher costs.

Equipment rental companies, which must constantly refresh their fleets, will likely see their acquisition costs for new machinery rise. These increased expenses are typically passed on to customers—the contractors and builders on the ground—in the form of higher rental rates. This could, in turn, tighten already narrow profit margins on construction projects and force adjustments to project bids and budgets.

Industry experts suggest that sustained high tariffs could lead to several behavioral shifts. Companies may delay new equipment purchases, choosing instead to extend the operational life of older machines. This could also drive a more pronounced shift in procurement, with buyers turning away from Chinese imports and directing more business toward domestic manufacturers like JLG and Terex or suppliers from other countries not subject to such duties. While this aligns with the ruling's goal of bolstering U.S. production, it may reduce price competition in the short term, affecting availability and affordability for end-users.

Moving forward, importers of Dingli's equipment will be required to make cash deposits at the new 32.26% CVD rate. Furthermore, U.S. Customs and Border Protection is tasked with closely monitoring for any attempts at duty evasion or circumvention, which carry severe penalties. With the potential for retroactive increases in future reviews, the financial calculus for importing Chinese-made equipment into the United States has become significantly more complex and costly.