2025-05887NoticeWallet

Uncle Sam slaps extra taxes on Chinese weed killer

Published Date: 4/7/2025

Notice

Summary

The U.S. Department of Commerce found that Chinese producers of 2,4-D, a common weed killer, got unfair government help. Starting April 7, 2025, extra taxes (countervailing duties) will be added to these imports to level the playing field for U.S. businesses. This means companies importing 2,4-D from China will pay more, protecting American growers and manufacturers.

Analyzed Economic Effects

4 provisions identified: 0 benefits, 3 costs, 1 mixed.

Final CVD Rates Set for Chinese 2,4‑D

Commerce found countervailable subsidies for 2,4‑D from China for the period January 1, 2023 through December 31, 2023 and set estimated ad valorem subsidy rates: Jiangxi Tianyu Chemical Co., Ltd. 26.50%, Shandong Rainbow Agrosciences Co., Ltd. 169.63% (rate based on facts available with adverse inferences), and an All‑Others rate of 26.50%. These percentage rates will be used to calculate estimated countervailing duties on imports of the covered 2,4‑D if a CVD order is issued.

Cash Deposits and Suspension Timeline

Following the Preliminary Determination, Commerce instructed U.S. Customs and Border Protection to collect cash deposits and suspend liquidation for entries of 2,4‑D from China entered or withdrawn for consumption on or after September 13, 2024. Commerce instructed CBP to discontinue suspension for entries on or after January 11, 2025, but to continue suspension for entries on or before January 10, 2025.

Products and Origins Included in Scope

The investigation covers 2,4‑dichlorophenoxyacetic acid (2,4‑D) and its salt and ester forms (including specified CAS numbers such as 94-75-7 and a list of salt/ester CAS numbers) irrespective of purity, particle size, or physical form. Conversion to salts/esters or formulation with other ingredients does not remove the product from scope, and the country of origin for a derivative is the country where the underlying 2,4‑D acid is produced. HTSUS subheadings for convenience are listed in the notice.

ITC Outcome Will Trigger Refunds or Duties

Commerce will notify the U.S. International Trade Commission (ITC) and the ITC must decide no later than 45 days after Commerce's final determination whether U.S. industry is materially injured. If the ITC finds no material injury, the proceeding will be terminated and all estimated duties deposited will be refunded or canceled. If the ITC finds material injury, Commerce will issue a CVD order, reinstate suspension of liquidation, and require cash deposits of estimated countervailing duties on imports of 2,4‑D.

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Key Dates

Published Date
4/7/2025

Department and Agencies

Department
Independent Agency
Agency
Commerce Department
International Trade Administration
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