China's trade in furniture in growing fast

The duties range from 4.9% to 198% on imports of bedroom furniture currently worth $1.2bn a year.

US furniture makers have been lobbying the Bush Administration for months to take action against Chinese furniture firms, saying they cost US jobs.

Their campaign has been supported by US labour unions.

The Commerce Department said its investigation had found that Chinese exporters "have sold wooden bedroom furniture...in the US market at less than fair value".

US producers and sellers disagree

US furniture retailers opposed the new tariffs, which will raise the selling price of made-in-China furniture in their stores.

"We think this petition was unjustified to begin with," said Mike Veitenheimer, a spokesman for the Furniture Retailers of America.

He said the investigation had uncovered "fairly low dumping margins, and added: "I don't think you can realistically say these it was the Chinese imports that were hurting the petitioners."

China's export industry for wooden bedroom furniture, centred on the southern boom town of Dongguan, has grown rapidly, as have sales to North America.

Its share of the US market for wooden bedroom suites has leapt from 10% in 2000 to just over a quarter of the market last year, the US International Trade Commission found.

Meanwhile, the workforce of US-based wood furniture makers has fallen by a quarter to about 29,500 in the same period.

Penalties

Seven firms produce 40% of China's wooden bedroom furniture exports to the US. They face a new tariff of up to 24.34%.

Eighty firms that agreed to supply information to the US Commerce Department received lower penalties of 10.92%.

All other Chinese furniture makers must pay duty at 198.08%, the Commerce Department said.

US furniture makers had pressed for extra duties of more than 400%.

"If these duties stay in place, it's going to be a huge boom for 20 to 25 companies. They will be the ones that profit at the expense of the American consumers," said Mr Veitenheimer.

The Commerce Department imposed the duties in a preliminary finding, which is due to be reviewed by the end of the year.