U.S. Department of Commerce Maintains Duties on Chinese Vertical Engines Amid Sunset Review
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The U.S. Department of Commerce has made a key decision in its ongoing efforts to enforce fair trade practices. On July 31, 2026, it announced the final results of the first sunset review of the countervailing duty order on certain vertical shaft engines from China. The decision means that duties on these engines will continue.
A countervailing duty (CVD) order was first put in place to address unfair subsidies given by foreign governments to manufacturers. This order targets vertical shaft engines between 99cc and up to 225cc, originating from the People’s Republic of China.
The decision highlights the essential role of the Commerce Department in ensuring U.S. manufacturers face a level playing field. According to the department, removing the existing order could see unfair subsidies resume, harming U.S. companies.
The review started on April 1, 2026. It was part of a regular process, known as a sunset review, which assesses if the countervailing duties should continue. Briggs & Stratton, LLC, a U.S. producer of vertical engines, actively took part in the review. They provided the necessary information to support the continuation of the duties.
The department carried out an expedited review because they did not receive enough responses from other interested parties. As a result, they finished the review in just 120 days.
The final duty rates are set as follows:
- Chongqing Kohler Engines Ltd: 2.84%
- Chongqing Zongshen General Power Machine Co: 18.13%
- All Others: 10.46%
These rates show the extra costs that these companies would face if they export engines to the U.S. This decision aims to ensure that U.S. producers can compete fairly and continue to thrive in the market.
The document containing this information is publicly available. It can be viewed online on the Government Publishing Office’s portal. The department reminds parties involved to comply with regulations regarding confidential information.
This decision marks an important step in the U.S. government’s duty to protect domestic industries from unfair international competition. The duties will remain effective, helping to maintain fair pricing in the U.S. market.
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