Giti raises prices 9.5% due to tariffs
Giti Tire (USA) Ltd. has raised prices by 9.5% on all passenger and light truck tires (excluding ST tires) the company produces in China and sells in the United States, effective Jan. 1, 2015.
The price increase is the result of the countervailing duties imposed by the U.S. Department of Commerce, which initially announced duties of 17.69% for Giti Tire in a preliminary judgment effective Dec. 1, 2014.
The company immediately appealed the accuracy of the calculations; the DOC reviewed its claims and acknowledged ministerial errors were made. The countervailing duties (CVD) were adjusted downward to 11.74%.
The company held off on price increases from its distribution centers during the DOC appeal because its stock inventory was not subject to CVD action. That inventory is now depleted and the company must account for the impact of the duties on tires that cleared U.S. Customs effective December 1.
“Giti Tire is committed to the U.S. market, and we look forward to working closely with our dealers to provide American consumers great quality tires at affordable prices,” says Armand Allaire, executive vice president of sales and marketing for Giti Tire (USA).
The next DOC action is scheduled for Jan. 20 when it will decide if anti-dumping duties will be assessed against tires manufactured in China.
Giti Tire Group, headquartered in Singapore, operates eight manufacturing plants.
Giti Tire (USA), based in Rancho Cucamonga, California, markets and sells GT Radial, Primewell, Dextero and Runway tires through national retailers, independent retailers and distributors in the U.S. and Canada.