Tariffs on Chinese Truck Tires Could Increase Slightly

March 7, 2022

Another review of the tariffs imposed on Chinese truck tires shows rates increased slightly in 2020, but still remain lower than when they were initially assessed in early 2019.

The International Trade Administration has completed its preliminary review of the countervailing tariffs charged and collected in 2020, and so far that review shows a slight increase compared to a review completed of the 2019 data. Countervailing tariffs are charged to offset government subsidies given to producers and importers in the country where products originate.

The government routinely reviews the tariffs that are imposed on products imported into the U.S., and the International Trade Administration has completed the first step of its review of data which covers Chinese truck tires imported into the U.S. during the year 2020. With the preliminary phase of the review complete, the government will now begin the final phase of its review.

In 2020, MTD research shows China imported 1.3 million medium truck tires into the U.S. That total dipped in 2021, to 1.1 million. Despite the decrease, in 2021, China was No. 5 on the list of top countries importing TBR tires into the U.S. (Thailand is the largest importer, bringing in 6.8 million truck  tires in 2021.)

Results of the review

This review applies only to the countervailing subsidies applied to TBR tires from China. Anti-dumping tariffs are investigated and reviewed separately.

In February 2019, when the tariffs on Chinese truck tires were first imposed, the countervailing tariffs ranged from 20.98% to 63.34%.

A review of 2019 data resulted in rates that ranged from 17.47% for Prinx Chenghan Tire Co. Ltd. to 14.77% for Qingdao Ge Rui Da Rubber Co. Ltd.

Here’s a look at the new rates following the preliminary 2020 review:

*Prinx Chengshan (Shandong) Tire Co. Ltd. 
**Qingdao Ge Rui Da Tire Co. 
Jiangsu General Science Technology Co. Ltd. 
Jiangsu Hankook Tire Co. Ltd.
Qingdao Awesome International Trade Co. Ltd.
Qingdao Doublestar Tire Industrial Co. Ltd.
Shandong Haohua Tire Co. Ltd.
Shandong Huasheng Rubber Co. Ltd.
Shandong Kaixuan Rubber Co. Ltd. 
Triangle Tire Co. Ltd. 

*The Department of Commerce says these companies are cross-owned with Prinx Chengshan: Chengshan Group Co. Ltd.; Shanghai Chengzhan Information and Technology Center; Prinx Chengshan (Qingdao) Industrial Research & Design Co. Ltd.; and Shandong Prinx Chengshan Tire Technology Research Co. Ltd.

**These companies are cross-owned with Qingdao Ge Rui Da: Cooper Tire (China) Investment Co. Ltd.; Cooper Tire AsiaPacific (Shanghai) Trading Co. Ltd.; Cooper (Kunshan) Tire Co. Ltd.; and Qingdao Yiyuan Investment Co. Ltd.

These rates will be published in the Federal Register on March 8, and effective the same day the U.S. Customs and Border Protection will be ordered to collect these duties.

Unless there’s an extension, the Department of Commerce expects to issue the final results of its administrative review of this case within 120 days.