Import Tariffs
We have already reported how Donald Trump’s second term as US president is likely to result in wide-ranging import tariffs. The kind of 20 per cent general import tariffs and 60 per cent China-specific import tariffs are significant enough, but market analysts are highlighting the secondary impact of tariffs on shipping costs.
The scale of Donald Trump’s success in the recent US election surprised many and disappointed those looking for a return to the White House for the democrats. But whatever you think of the once-again President Elect, based on his many and varied promises to the electorate, there is no doubt that his second term will result in change. The question is how will that change affect tyre businesses?
The U.S. Department of Commerce has issued a final ruling to impose anti-dumping duties of 12.33%-48.39% on truck and bus tyres imported from Thailand. Among them, Bridgestone Corporation, a company located in Thailand, was subject to a tax rate of 48.39 per cent. Prinx Chengshan (Thailand) needs to pay an anti-dumping duty of 12.33 per cent. Other manufacturers and exporters located in Thailand also need to pay a tax rate of 12.33 per cent.
The Brazilian Foreign Trade Chamber (CAMEX) approved a request from the Brazilian tyre industry association ANIP to impose a 25 per cent tariff on imported passenger car tyres (PCR) for the next 12 months. Previously, the tariff was 16 per cent.
The news that the UK’s Trade Remedies Authority (TRA) has decided to recommend import tariffs of up to £110.11 per tyre on imports of Chinese-produced truck and bus tyres to the secretary of state has attracted understandable interest. A couple of days after the initial recommendation was made, Tyres & Accessories has discovered further details both of the recommendations themselves and about how tariffs came to be recalculated.
The UK’s Trade Remedies Authority (TRA) has published its initial findings on two transition reviews into anti-dumping and countervailing measures on lorry and bus tyres imported from China. Based on evidence provided, the TRA has recommended that the new combined anti-dumping and countervailing duty rates range from £10.03 per tyre to £110.11 per tyre.
The European Union is planning to impose additional import tariffs of up to 38.1 per cent on Chinese-produced electric vehicles (EV) effective July 2024. Leading Chinese EV-makers BYD Co., Geely Automotive Holdings Ltd. and SAIC Motor Corp Ltd cooperated with the investigation and so received bespoke rates. Specifically, BYD imports will be charged 17.4 per cent, Geely 20 per cent and SAIC 38.1 per cent. All others will be charged 38.1 per cent.
On 2 January, the US Department of Commerce announced that it would launch the first anti-dumping and countervailing sunset review investigation into truck and bus tyres (TBR) imported from China. Stakeholders should register a response to the US Department of Commerce before January 12 (within ten days from the date of the announcement). According to the China Rubber Industry Association, the North American trade union organisation USW (United Steelworkers) has submitted a registration to respond.
Ahead of the expiry of anti-dumping tariffs on China-produced truck tyres imported into the European Union, on 20 October the European Commission reported receiving a request to review these. The European industry observers our sister title Neue Refeinzeitung (NRZ) spoke to expect a preliminary decision at the beginning of the review. Meanwhile, Chinese market sources told Tyrepress China that the tyre makers at the centre of the case have generally responded “calmly”, having become accustomed to “trade barriers” from Europe. Whatever the current market reaction is, the investigation will be concluded “within 12 months and in any event no later than 15 months from the date of…publication” (20 October 2023), according to the Commission.
The Trade Remedies Authority (TRA) has extended the NTDA’s deadline for submission of pre-sampling questionnaires following a request from the tyre industry body. At the start of May, TRA initiated two transition reviews into anti-dumping (T0035) and anti-subsidy (T0036) measures on lorry and bus tyres imported from China. However, the initial deadline for that was 18 May 2023 – too short a time period for many.
Following the news that the EU introduced new definitive duties against Chinese-produced truck tyres, and the suggestion that a UK investigation is imminent, the UK Trade Remedies Authority (TRA) has initiated “two transition reviews into anti-dumping and countervailing measures on lorry and bus tyres imported from China”.
Following the news that the European Commission has introduced new definitive import tariffs against Chinese-produced truck tyres, we now know that a decision relating to any UK implementation of those rules is scheduled to be made by October. The latest detail is that the body responsible for the investigation relating to the UK implementation of any tariffs is set to start in weeks, according to the Imported Tyre Manufacturers Association (ITMA).
In May 2022, European Union anti-dumping and anti-subsidy tariffs were annulled. Then a new investigation began. Now new final determinations have been made, but what does this mean in the UK?
The European Commission has provisionally recalculated anti-Chinese-produced truck tyre import tariffs to between €21.12 and €61.76 per tyre, equating to a reduction of between 0 and 51 per cent, depending on the manufacturer. Consultation on the provisional recalculation is now open until 23 January, before the final determination will be made on 25 January 2023.
In 2022, several significant events took place in China’s tyre industry. These things had a profound impact on the tyre industry not only in 2022, but for a long time.
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