The US has imposed duty on imports of polyester textured yarn from China and India. This followed complaints by yarn makers in the US like Unifi and Nan Ya Plastics of unfair trade practices.
Foreign companies that price their products in the US market below the cost of production or below prices in their home markets are subject to antidumping duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks or production inputs, are subject to countervailing duties aimed at directly countering those subsidies. Exporters from China and India are said to have dumped yarn in the US at margins ranging from 76.07 per cent to 77.15 per cent and 17.62 per cent to 47.51 per cent respectively. The US also determined that exporters from China and India received countervailable subsidies at rates ranging from 32.18 per cent to 473.09 per cent and 4.29 per cent to 21.83 per cent respectively.
In 2018, US imports of polyester textured yarn from China and India were valued at an estimated $45.5 million and $21.6 million respectively. Unifi feels the dumping and unfair subsidies have negatively impacted its business but believes recent trade developments, including the antidumping and countervailing duties, will provide meaningful opportunities over the next few quarters.