Foreign trailer manufacturers are being accused of hurting the U.S. market through unfair trade practices, a claim the federal government is investigating.
Responding to claims from U.S. manufacturers, the U.S. International Trade Commission is investigating truck trailers coming from Canada, China and Mexico. Foreign manufacturers are reportedly selling trailers in the United States at less than fair value, known as dumping. Those trailers are allegedly receiving government subsidies from the three countries.
The investigation stems from an antidumping/countervailing petition submitted by the American Trailer Manufacturers Coalition, an ad hoc group that includes Great Dane, Stoughton and Wabash. U.S. truck trailer makers claim that unfair practices by Canada, China and Mexico have injured the domestic trailer industry and its workers.
Specifically, the coalition says foreign truck trailer manufacturers “have gained a significant and increasing share of the U.S. market” at the expense of the U.S. industry. Consequently, U.S. manufacturers have experienced significant drops in production, shipments, performance and employment. Nearly 10,000 jobs are directly supported by the trailer industry.
“Trade relief is necessary to remedy the injurious effects of unfairly traded van trailer products coming in from Mexico, China, and Canada that are severely hindering the ability of coalition members to compete fairly,” Robert E. DeFrancesco III, counsel to the American Trailer Manufacturers Coalition, said in a statement. “The application of antidumping and countervailing duties will level the playing field and save America’s trailer manufacturing industry.”
Hyundai and Vanguard take center stage
According to the American Trailer Manufacturers Coalition petition, Hyundai Translead and Vanguard National Trailer Corporation are the focus of the probe.
In 2016, Hyundai Translead added a fourth Mexican manufacturing facility. From 2017 through 2024, truck trailer imports from Mexico averaged nearly 57,000 units per year, which was twice the rate from 2010 to 2015. Meanwhile, Vanguard’s parent company, China International Marine Containers, was ramping up subassembly imports in China.
Following Section 301 tariffs on China in 2018, China International Marine Containers announced a Canadian facility in 2020. Assembly operations began in 2021. Immediately, the effects were felt. Canadian truck trailer imports rose 147% from 2021 to 2022, according to the petition.
The American Trailer Manufacturers Coalition claims that truck trailer purchases surpassed the number of trailers needed to meet freight demand. The coalition surmises that, due to purchasers overstocking on low-priced imports in 2022 and 2023, new trailer orders plummeted in 2024.
“Demand will be suppressed until this supply overhang is fully absorbed, at which point subject imports, without discipline, will again rush into the market,” the petition states. “Moreover, in addition to deflating demand for new trailers, subject imports continued to use unfair pricing to win sales and capture the little demand that remained in 2024 and Hl 2025. Unfair pricing has compounding effects in an unexpectedly suppressed market where U.S. and foreign producers are competing for fewer sales.”
According to the petition, dumping margins have been as high as nearly 300%, 1,400% and more than 430% from Canada, China and Mexico, respectively.
Hyundai and Vanguard feature heavily in the petition, but any eventual duties would apply to all van trailers imported from Canada, China and Mexico.
Next steps
A final decision is not expected until next year, but relief for U.S. truck trailer manufacturers can arrive sooner.
If the International Trade Commission finds dumping is occurring, the Department of Commerce can impose an antidumping duty. That would offset the amount by which foreign trailers are being sold at less than fair value by charging importers a duty on the difference. Countervailing duties have the same effect on foreign government subsidies.
A preliminary determination by the commission is due Jan. 5. The Department of Commerce must give its preliminary determination as well, which is due in mid-2026. A final determination is not scheduled until the end of next year. However, duties can be imposed at any time during the investigation.
The American Trailer Manufacturers Coalition was formed to “protect the U.S. van trailer industry from the unfair foreign trade practices that threaten it,” according to its website. Its first public activity was earlier this year.
In May, the group asked the Department of Commerce to include truck trailers as steel and aluminum derivative products under the Section 232 tariffs. That request was granted in August. The 25% tariff applies to the value of the steel and aluminum within the trailer, not the entire trailer.
Neither Hyundai Translead nor Vanguard could be reached for comment. LL
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