DOC set to impose 20%+ tariffs on Chinese TBR imports
The United Steelworkers’ (USW) fight against cheap Chinese truck and bus tire imports has chalked up another success, with the U.S. Department of Commerce (DOC) making a positive preliminary finding in the anti-dumping case.
What does this mean for the industry?
This means importers will need to start posting cash deposits or bonds to offset dumping by Chinese tire producers at margins ranging from 20.87 percent to 22.57 percent. In June, the DOC announced preliminary countervailing duty margins of 17.06 to 23.38 percent.
Together, anti-dumping and countervailing margins are nearly 40 percent on truck and bus tire imports from China.
The Department’s final determination in the antidumping duty investigation is due in Jan 2017. If it finds in the affirmative, the U.S. International Trade Commission will make a final ruling on material injury in March.
USW pleased with success
The USW said it welcomed the decision, saying the DOC’s preliminary determination “confirmed what their (Jan 29) petition alleged.”
“The government investigators and our trade counsel have been diligent in handling this massive trade case involving more than $1 billion value of truck and bus tire imports from China in 2015, increasing market share each of the last three years at the expense of American producers and USW tire production workers,” said USW International President Leo W. Gerard.
“Unfair truck tire imports from China have denied our domestic industry the opportunity to share in job increases during a period of robust demand growth.”
USW International Secretary-Treasurer Stan Johnson said Chinese truck tire imports had grown from 6.3 million in 2012 to 8.9 million in 2015, with an increased share of consumption of more than 36 percent by 2014.
“Again and again China has been shown to benefit from massive subsidies and to engage in widespread dumping in order to gain market share at the expense of American jobs,” he said.
“We have fought back against China’s predatory trade practices in nearly every part of the tire industry, including tires for passenger cars, light trucks, off-road vehicles, and now truck and bus tires.”
The USW petition against Chinese imports was lodged on January 29, 2016, a few weeks after it joined with Titan International in filing petitions alleging cheap off-the-road (OTR) imports from China, India and Sri Lanka are harming the country’s domestic OTR tire-producing industry.
While final determinations by the Department of Commerce and the U.S. International Trade Commission are still to be made in the OTR case, the case against China has failed and it appears that only countervailing duty orders for OTR tires for India are likely to succeed.