Tariffs Cut on Chinese Furniture

The government Tuesday upheld a ruling that Chinese bedroom furniture was being sold in the United States at unfairly low prices, but it scaled back penalty tariffs.

The Commerce Department decision represented at least a partial victory for U.S. retailers, who contended that the furniture was not being sold at prices below the cost of production, a practice known as dumping.

U.S. furniture makers have argued that a surge in Chinese furniture has forced plant closings and 35,000 layoffs, with much of the injury concentrated in Southeastern states. They contend that Chinese firms are unfairly pricing their products in the U.S. market.

U.S. manufacturers had petitioned the Commerce Department’s International Trade Administration to impose penalty tariffs, known as anti-dumping duties, to make the products more expensive to American consumers and give their industry a better chance of competing.

China supplies about half of the imported bedroom furniture coming into the U.S., an amount that totaled $1.2 billion last year.

The ruling Tuesday lowered the penalty tariff for 115 Chinese companies, accounting for about 65% of Chinese furniture imports, to 8.64%, down from the preliminary tariff of 12.91%.

Six companies accounting for about 35% of Chinese furniture imports will face penalty tariffs ranging from 2.22% to 16.7%.