U.S. Slaps Preliminary Countervailing Duties on Asian Plywood Imports

Event summary

  • U.S. Commerce Department imposed preliminary countervailing duties on hardwood and decorative plywood from China (81.34%), Indonesia (2.40%–128.66%), and Vietnam (4.37%–26.75%) on January 16, 2026.
  • Duties will be collected by U.S. Customs and Border Protection immediately upon publication in the Federal Register.
  • Final determination on countervailing duties is scheduled for early May 2026, with antidumping duty rates expected in late February 2026.
  • Commerce found 'critical circumstances' for Chinese imports, allowing duties to be collected retroactively for 90 days.

The big picture

The U.S. Commerce Department's move to impose preliminary countervailing duties on plywood imports from China, Indonesia, and Vietnam marks a significant escalation in trade protections for domestic manufacturers. This action follows years of complaints from U.S. producers about subsidized foreign competition, reflecting broader trends in industrial policy aimed at bolstering domestic manufacturing sectors. The scale of the duties—particularly the 81.34% rate on Chinese imports—could reshape supply chains and pricing dynamics in the construction materials sector.

What we're watching

Regulatory Headwinds
How the final countervailing and antidumping duty rates will impact Asian plywood exporters' market share in the U.S.
Supply Chain Shifts
Whether U.S. manufacturers can capitalize on higher import costs to gain market share.
Enforcement Dynamics
The pace at which U.S. Customs and Border Protection will detect and penalize duty evasion attempts.