US Commerce Department Issues Preliminary Countervailing Duties on Hardwood Plywood From China, Indonesia, and Vietnam

On January 16, the US Department of Commerce released preliminary affirmative countervailing duty findings on hardwood and decorative plywood from China, Indonesia, and Vietnam, citing significant government subsidies, according to law firm Wiley Rein (1-21-26).

Commerce calculated preliminary countervailing duty rates of 81.34% on imports from China, 2.40–128.66% on imports from Indonesia, and 4.37–26.75% on imports from Vietnam.

The Coalition for Fair Trade in Hardwood Plywood, which represents a substantial majority of the US hardwood and decorative plywood industry, said it supports Commerce’s decision to impose the preliminary duties to address what it described as unfair trade practices.

Once the preliminary determination is published in the Federal Register, US Customs and Border Protection will begin collecting duties on covered entries from all three countries. Commerce also found that critical circumstances exist for imports from China, meaning duties will be applied retroactively to entries made on or after 90 days before publication.

Commerce said its countervailing duty investigations will continue over the coming months, including further examination of existing and newly alleged subsidy programs. A final determination is currently scheduled for early May 2026.

The agency is also conducting parallel antidumping investigations on hardwood and decorative plywood from China, Indonesia, and Vietnam, with preliminary antidumping rates expected in late February 2026.