Total tariff load could be between 45 and 50%

When you add the standard preliminary countervailing charge of 15.69 per cent to the predicted anti-dumping tariff of between 25 and 35 per cent, it means we are looking a total potential tariff load in the region o 40 to 50 per cent. Writing in an investor’s note published immediately after the Department of Commerce announcement, SunTrust Robinson Humphrey analyst Robert Higginbotham certainly suggested as much: “We believe in the middle to upper end of expectations. Countervailing typically the smaller of the two pieces (the other being antidumping); today’s decision [24 November] implies a total tariff in the range of 45-50 per cent.

He went on to explain that, so far there are three exceptions to the preliminary countervailing ruling and therefore the standard 15.96 per cent rate. The first two are Cooper Kunshan China Tire Co. Ltd. and Giti Tire Fujian Co. Ltd. which attracted rates of 12.5 and 17.69 per cent respectively – apparently because they didn’t increase imports when news of the case was announced. Shandong Yongsheng on the other hand have been lumped with a 81.29 per cent figure.

Higginbotham interpreted the exceptions as “a positive for Cooper though [we] would note that the Department of Commerce will be further investigating three subsidy programmes some of which [are] used by Cooper Kunshan”. Since that note was written the Department has confirmed via complainants the United Steel Workers union that they are investigated a total of nine programmes, making the situation a veritable case-by-case situation.