The Trump administration has imposed steep trade penalties on disposable food containers from China and Vietnam after the US International Trade Commission (ITC) ruled American industry was injured by unfair imports, reported Fox News.

The ITC found that thermoformed molded fibre products, including disposable bowls, plates and cups, were being dumped at unfairly low prices. The Commerce Department will now issue final antidumping and countervailing duty orders, separate from existing tariffs, to level the playing field for US manufacturers.

Duties will reach as high as 540 per cent on some Chinese producers, including more than 477 per cent for dumping alone, and more than 260 per cent on Vietnamese producers. The ITC also authorised retroactive duties on Vietnamese imports, a rare move in the past 25 years.

Attorney Yohai Baisburd, counsel to the American Molded Fiber Coalition, said the measures will allow US companies to reinvest in workers and technology. He noted the Trump administration is using all enforcement tools, including customs actions and a new DOJ Trade Fraud Taskforce, to protect domestic manufacturing.

The duties will apply for at least five years and are not subject to presidential discretion. Health concerns have also been raised, with ITC reports citing "forever chemicals" in some foreign-made containers.

The ruling marks the third recent trade case affecting disposable food service products, following duties on aluminium containers and paper plates from Asia.