15.6% to 17.6% tariffs are effective immediately -- and retroactive

Posted on November 24, 2014

The United States Department of Commerce (DOC) has set additional tariffs on Chinese consumer tire imports. Based on the decision -- which goes into effect immediately but can be reviewed at a later date -- Cooper Tire & Rubber Co. is better off than Shandong Yongsheng Rubber Group Ltd.

Tire importers that stockpiled Chinese product in advance of the tariff were also hit hard by the decision: The tariffs are retroactive to the last 90 days.

The DOC reportedly imposed the following tariffs (in addition to the existing 4% tariffs) on consumer tires imported from China:

Cooper Tire: 12.5%

GITI: 17.69%

Yongsheng: 81.19%

All other Chinese exporters: 15.69%

This is the first round of tariffs, which were handed out because the DOC determined the Chinese government was illegally subsidizing tires exported to the United States. More tariffs are possible; the deadline for the DOC to rule on the Chinese antidumping duty determination -- a separate issue -- is Jan. 20, 2015.

Unless it is struck down, the tariff will last for at least five years; based on similar cases involving Chinese imports, 10 years may be more likely.

Trailer and race tires are exempted.

"The USW is gratified the Commerce Dept. found significant countervailing duty margins on subsidized Chinese tire imports," says Leo Gerard, president of the United Steelworkers (USW) union.

"The Commerce Dept. is right to neutralize the negative effects of the unfair subsidies the Chinese government has granted to tire exporters. These illegal subsidies have resulted in thousands of lost American tire manufacturing jobs. If left unchecked, they would devastate tens-of-thousands more jobs in the U.S. economy."

In July 2014, the DOC's International Trade Commission (ITC) determined that passenger and light truck tire imports from China may or may soon be "materially" injuring the domestic tire industry. The ITC's preliminary findings followed an initial determination by the DOC to investigate dumping claims by both the United Steelworkers (USW) and AFL-CIO.

For more China tire tariff news see:

DOC postpones Chinese imports decision.”

DOC postpones China tire tariff determination.”

Tire tariff determination: The end has begun.”

Chinese import facts, per the ITC and USW.”

ITC says Chinese imports may be harmful.”

Could Chinese tire tariff include trailer tires?

Are tire manufacturers pro-tariff?

Tariffs and higher prices may be inevitable.

Related Topics: Chinese imports, DOC, ITC, Leo Gerard, tariffs, USW

Comments ( 1 )
  • Charles

     | about 4 years ago

    I would like the thank the US government and the unions for making my tires too much to afford along with my US built car I can no longer afford !!! When they raise the imports, the USA built ones went up proportionally. So while you Union workers buy Japanese cars and trucks I'm stuck with my Buy American products. I have been a buy union built American products all my life, but now I have to buy 16 inch tires for my American built GM vehicle where the Chinese tires would be 50 bucks, I now have to pay $125.00 each. Well its fine because my next truck will be one made in JAPAN !!

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