The American Alliance for Hardwood Plywood (AAHP) and the International Wood Products Association vented their concern after the US Department of Commerce imposed rates of 22.63% on imports of hardwood plywood from Chinese producers who had responded to an official investigation into alleged subsidisation of their products.

Three Chinese producers who were mandatory respondents to the investigation and were investigated in detail were not given duties, effectively undermining the allegations of unfair subsidies. Some 15 Chinese producers who have not responded to the investigation have been handed 27.16% preliminary duties.

"We are clearly confounded by this result – as is our entire industry and related industries," said Gregg Wilkinson, co-chairman of the AAHP.

Mr Wilkinson said the government’s decision on one hand found a lack of evidence of Chinese subsidies yet simultaneously disadvantaged mills that willingly participated in the case.

"The AAHP believes this preliminary duty will severely damage the American industries that depend on this unique hardwood plywood; not only the small, family-owned importers, but also the large and small American manufacturers of a variety of products – from kitchen cabinets to recreational vehicles," the AAHP said.

Final countervailing and anti-dumping rates will be announced on September 18.