U.S. Department of Commerce Keeps Extra Taxes on Chinese Engines
Estimated reading time: 2–4 minutes
On June 3, 2026, the U.S. Department of Commerce made an important decision. They decided to keep extra taxes, called countervailing duties, on certain engines from China. These engines are large, vertical shaft engines. They range from 225cc to 999cc in size.
The Department thinks that removing these duties would lead to Chinese companies continuing to receive unfair help from their government. This kind of help is known as a subsidy. Subsidies can make products cheaper, making it hard for other countries to compete.
The decision is based on a review that started on February 2, 2026. The review checked if these subsidies would continue without the duties in place. The main companies in the U.S. that care about this decision are Briggs & Stratton, LLC and Discovery Energy, LLC.
These companies gave their thoughts to the Department of Commerce by March 4, 2026. The Government of China and other Chinese companies did not respond with their thoughts.
The review found rates for subsidies that would likely continue. For Loncin Motor Co., the rate is 18.96 percent. For Chongqing Zongshen General Power Machine Co., the rate is 20.38 percent. All other companies would have a rate of 19.85 percent.
This decision means the U.S. will keep the extra taxes on these engines. This helps protect American companies from unfair competition. The decision was announced by Scot Fullerton, Acting Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations.
The Department of Commerce’s review shows how important it is to check on foreign subsidies. They want to make sure trade with other countries is fair for everyone.
Legal Disclaimer
This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.
