U.S. government reduces tariffs on Chinese OTR imports

Tariffs on imported Chinese OTR tires have been lowered.

U.S. government reduces tariffs on Chinese OTR imports

The U.S. Department of Commerce, after an administrative review, has lowered the tariffs on certain pneumatic off-the-road (OTR) tires imported from China.

What’s the background?

On October 9, 2015, the Department of Commerce published the results of a preliminary administrative review of anti-dumping duties charged to Chinese OTR tire manufacturers between September 1, 2013 and August 31, 2014. The review stated that Chinese OTR tire manufacturers faced antidumping duty rates between 86.78 and 99.36 percent for exports to the U.S. These included Xuzhou Xugong Tyres Co. Ltd, Qingdao Qihang Tyre Co. Ltd and Weihai Zhongwei Rubber Co. Ltd.

The review was then opened for comments and the department received case and rebuttal briefs from Titan Tire Corporation, United Steelworkers (USW) , Qihang and Xugong.

On March 17, the Department of Commerce held a public hearing at the request of respondents and petitioners. Consequently, the department reviewed its preliminary review and the six importers now involved (some were found not to have supplied tires during the period in question) still have to pay duties but less than the rate previous stated. The new rates are between 65.33 and 79.86 percent.

Changes in the weighted average dumping margins

Changes tire

China in ITC’s sights

The U.S. International Trade Commission (ITC) is also currently investigating cheap Chinese truck and bus tire imports allegedly being subsidized and sold in the United States at less than fair value.

According to the USW’s petition, imports from China have grown from 6.3 million truck and bus tires in 2012 to 8.4 million tires in 2014 — an increase of 33 percent. The USW says American-made truck and bus tire shipments declined by 7.8 percent despite an overall demand for those tires expanding during the 2012-2015 period, while China captured an increased share of apparent consumption of 6.8 percent from 2012-14.

This is the second petition USW has filed against Chinese tire imports this year. On January 8 it joined with Titan International to file a similar petition against cheap OTR tire imports from China, India and Sri Lanka, claiming they were harming the domestic OTR tire-producing industry and affecting American jobs.

However, on February 19 the ITC voted to continue its investigations into those tires imported from India and Sri Lanka but would not look further at Chinese OTR imports, saying they were “negligible.”

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