Over the past year there has been much discussion about U.S. tariff policy. But there is another trade policy area where Congress, and the Trump Administration, should focus its energy and pursue reforms to offer relief to U.S. manufacturers and businesses. It is the antidumping duty (AD) and countervailing duty (CVD) laws which use detailed and transparent rules that are applied narrowly to address violations of American trade law against illegal trade practices by specific foreign countries.
Dumping occurs when a foreign firm exports goods to the U.S. at a price lower than its home market price or below the firm’s cost of production. CVDs are applied when foreign governments provide their exporting industries with countervailable subsidies. AD and CVD laws protect domestic industries from the foreign competitors’ illegal “dumping” and foreign governments’ subsidies through a well-established administrative process. However, even when a petition for relief is successful, foreign companies can find ways to evade the application of the duties. As this cheating continues, U.S. businesses are often harmed even when there are existing duty rates being applied. The Committee to Support U.S. Trade Laws (CSUSTL) claims that this is largely due to the evolving nature of trade in the 21st century where domestic businesses are constantly subjected to complex and nuanced illegal trade actions by predatory nations such as China. An update to the traditional laws is needed if the AD and CVD laws are to be effectively enforced against this evolving threat.
CSUSTL supports enactment of the Leveling the Playing Field Act 2.0 (LTPFA 2.0) as a needed upgrade to the laws. It is bipartisan legislation introduced by U.S. Representatives Terri Sewell and Beth Van Duyne, along with Senators Todd Young and Tina Smith. The act aims to modernize U.S. trade remedy law to address anti-free market trade practices, by China and others, by providing administrative tools for the U.S. to stop illegal dumping and subsidies.
In 2026, Congress faces challenges for passing sweeping bipartisan trade legislation due to it being an election year, and a limited legislative schedule already filled with must pass legislation. But CSUSTL suggests the mostly non-controversial technical adjustments to the law included in LTPFA 2.0 could be included in bills to be considered by Congress in 2026. CSUSTL urges Congress and the Administration to act through either legislation and/or regulatory action to make the needed changes in the coming months.
