The US is set to impose much higher tariffs on automotive tyres imported from several Asian countries after its Department of Commerce provisionally upheld a ruling accusing suppliers of selling their products at below market prices in the country.
Anti-dumping tariffs of up to 102% are expected to be applied to passenger and commercial vehicle tyres imported from South Korea, Thailand, Taiwan and Vietnam, with the highest rates set to be applied to products originating from Taiwan.
Tariffs averaging 85% are to be imposed on Taiwanese manufacturers according to the latest adjustments made by the department, with Nankang Rubber Tire Corporation facing the highest tariffs of just under 102% while Cheng Shin Rubber Industry Company will incur the lowest tariffs – of just over 20%.
South Korean exporters face tariffs of between 15% and 27% while Thai manufacturers may be subject to tariffs ranging between 15% and 21% and Vietnamese products up to 22%.
The department will forward its final report to the International Trade Commission (ITC) for further consideration before the anti-dumping tariffs can take effect.
The ITC’s commissioners are scheduled to conclude a separate investigation and vote on whether to uphold the case on 23 June.
The Taiwan Rubber & Elastomer Industries Association said that it was surprised by the latest ruling, saying its members have not “intended” to dump their products in the US market. It confirmed that manufacturers such as Nankang Rubber are considering relocating production to other more favoured countries such as China.
In 2020 the US imported passenger vehicle and light truck tyres valued at US$2bn from Thailand, $1.2bn from South Korea, $470m from Vietnam and $373m from Taiwan, according to the department.