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

The ITC found that thermoformed molded fibre products, including bowls, plates and takeaway containers, were being dumped at unfairly low prices. The US Commerce Department will now issue final antidumping and countervailing duty orders.

Duties will reach up to 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.

Attorney Yohai Baisburd, counsel to the American Molded Fiber Coalition, said the penalties would level the playing field for US manufacturers. He added the duties would allow companies to reinvest in workers, operations and technology.

The duty orders are legally binding enforcement measures, separate from tariffs, and will apply for at least five years. They are based on investigative findings by the Commerce Department and ITC and enforced by Border Patrol.

Other administrations have used similar measures, but analysts said the Trump administration has broadened enforcement tools, including customs actions, a DOJ trade fraud taskforce and scrutiny of supply chain shifts.

Health concerns have also been raised. An ITC report in 2024 found some containers from China and Vietnam contained "forever chemicals" despite claims they were PFAs-free, while US products were generally free of such substances.