UK Duties on Chinese Excavators Reach 40.08%; Caterpillar Group Faces 18.81% Rate
Key Facts
The United Kingdom imposes definitive anti-dumping duties on certain categories of tracked excavators with a 360-degree revolving superstructure originating in China, at rates ranging from 18.81% to 40.08%, according to the UK Trade Remedies Authority. Caterpillar Group’s official rate is 18.81% for the covered categories, while the residual rate of 40.08% applies to other exports. Countervailing duties of between 0% and 2.98% also apply, according to the authority’s statement on the definitive measure. The measures took effect on May 14, 2025, following a UK investigation into imports of Chinese excavators. The case focuses on equipment with an operating weight of 11 tonnes to less than 80 tonnes.
The rules define the covered products as excavators weighing 11 tonnes or more but less than 80 tonnes, according to a notice from the UK Department for Business and Trade. The authority excluded excavators weighing 80 tonnes or more, saying the UK has no industry producing this category and concluding that imports of these machines do not injure domestic industry. The authority estimated that the measures could benefit UK excavator producers by up to £26 million a year. It said lower production costs had enabled Chinese exporters to price their exports below British competitors, which do not benefit from a comparable low-cost base. The investigation followed an application by a UK producer, and the authority set the investigation period as July 1, 2022, to June 30, 2023.
Caterpillar (Xuzhou) Ltd had previously sought judicial review in February 2025, challenging the provisional measures before the authority and the Department for Business and Trade. The court issued its judgment on May 9, 2025, finding that the claims against the authority and the minister were not arguable, and also refused permission to challenge all grounds for review. On June 13, 2025, Caterpillar Group applied for reconsideration of the decision on 19 grounds. These included the calculation of the injury margin and dumping margin, the determination of injury and causation, and the form of the measures. In a decision published on December 22, 2025, the UK Trade Remedies Authority said it saw no grounds to change its original decision and kept the duties in force from May 14, 2025.
In a separate oversight step, the authority began its first duty absorption review on March 30, 2026, following an application by a UK excavator producer. The application argued that the definitive duties imposed in May 2025, as well as the provisional measure issued in December 2024, had not achieved the intended effect on prices. The review examines the export prices of imported excavators, their resale and subsequent prices, and whether the duties have been reflected in them. The deadline for interested parties to register to participate in the proceeding was April 14, 2026. Based on the review’s findings, the authority may recommend retaining or amending the duties.
Caterpillar shares, listed under the ticker CAT, closed at $692.13 on October 26, 2026, compared with a close of $687 on October 23, according to EL7 data. These prices provide context for the stock’s movement in the two sessions cited, without establishing a link between the change in the closing price and the UK duties. The duty absorption review remains the ongoing regulatory process related to prices for imported excavators. Any potential amendment to the measures will depend on the authority’s findings from its examination of export, resale and subsequent prices. The available official facts do not include details that can be relied upon to confirm the new legal action suggested by a circulating headline about Caterpillar.