Unrealistically cheap domestic intermodal containers from China aren't damaging the U.S. industry enough to slap on tariffs, acording to a trade commission ruling.

The U.S. International Trade Commission determined that "the establishment of a U.S. industry is not materially retarded by reason of imports of 53-foot domestic dry containers from China," despite the fact that the U.S. Department of Commerce has determined they are subsidized and sold in the United States at less than fair value.

The unfair trade investigations of imports from China were conducted in response to a petition filed last April by Stoughton Trailers, the sole U.S. producer of 53-foot domestic dry containers. Stoughton alleged in its petition that unfairly traded imports of these containers from China have prevented the company from establishing a competitive footing in the U.S. market.

The petition also said Stoughton has suffered material competitive injury as a result of these unfair trade practices. According to the petition, the domestic container manufacturing industry in the U.S. has been “materially retarded,” that is, abnormally prevented from growing and developing as it otherwise would have in a truly free market, as a result of the Chinese imports. 

The commission, however, did not agree. Its decision means no antidumping or countervailing duty orders will be issued on imports of these products from China.

Stoughton spokesman Scott Nachreiner said the company was disappointed by the determination. "As a U.S. manufacturer, we believe in American made, and the jobs that come with it."

There is an opportunity for Stoughton to appeal the ITC's ruling, but the company says it will not make any decisions until it has a chance to review the reasoning in the full report when it is released in a few weeks.

The commission’s public report, 53-Foot Domestic Dry Containers from China, will contain the views of the commissioners and information developed during the investigations. It will be available by June 22 and will be available online here.