82%-128.7% China duties, <2% Mexico levies could bolster Wabash National
WNC•S&P Global Ratings cut Wabash National’s debt rating to B- from B, matching Moody’s B3 cut last month. Commerce Department preliminarily set countervailing duties of 82.3%-128.7% on Chinese and under 2% on Mexican van-trailer imports.
1. Debt Rating Downgrade
S&P Global Ratings lowered Wabash National’s unsecured debt rating to B- from B, aligning with Moody’s B3 downgrade earlier this year. This marks Moody’s third cut in a year and could raise the company’s borrowing costs and impact investor sentiment.
2. Preliminary Countervailing Duties
The Commerce Department found that China and Mexico subsidize their van-trailer industries and has set preliminary countervailing duties ranging from 82.3% to 128.7% on Chinese exporters and below 2% on Mexican exporters. Canadian assemblies using Chinese subcomponents are also subject to the Chinese duty rates.
3. Potential Market Relief
The American Trailer Manufacturers Coalition, including Wabash National, estimates that imports now account for about 40% of the U.S. van-trailer market, up from roughly 48,000 units annually in 2015–2017 to 80,600 units in 2022–2024. Imposing these duties could curb low-cost imports and support domestic trailer volumes amid Wabash’s recent supply downturn.
