DOC Tweaks Tariffs on PLT Tires From China

March 10, 2022

The U.S. Department of Commerce has completed the final steps of its latest review of tariffs on passenger and light truck tires from China — and made minor adjustments to the preliminary rates that were published in the fall.

The government reviewed both the anti-dumping duties, as well as the countervailing duties, applied to PLT tires from China.

Anti-dumping tariffs:

The government reviewed passenger and light truck import data from Aug. 1, 2010 through July 1, 2020. Five companies were all awarded the same rate of 2.06%:

  • Sumitomo Rubber Industries Ltd., Sumitomo Rubber (Hunan) Co. Ltd. and Sumitomo Rubber (Changshu) Co. Ltd.
  • Qingdao Landwinner Tyre Co. Ltd.
  • Qingdao Nexen Tire Corp.
  • Shandong Qilun Rubber Co. Ltd.
  • Zhaoqing Junghong Co. Ltd.

Some companies, including those who didn’t qualify for or request a review of their own individual rate, will be assessed what is known as the rate for China-wide entities — which was earlier set at 76.46%.

Countervailing tariffs:

These tariffs are assessed in response to government subsidies that companies receive or benefit from in China. They're reviewed separately from the dumping tariffs. The review pertains to the 2019 calendar year.

The Department of Commerce did slightly lower the rates in the final round of this investigation. 

  • Sumitomo Rubber (Hunan) Co. Ltd. and its cross-owned affiliates 24.79% (it had been 25.49%)
  • Triangle Tyre Co. Ltd. 124.53% (it had been 124.92%)

Sumitomo’s rate of 24.79% will also apply to three other companies that didn’t qualify for their own individual reviews: Jiangsu Hankook Tire Co. Ltd., Qingdao Landwinner Tyre Co. Ltd. and Shandong Province Sanli Tire Manufacture Co. Ltd.

Interestingly, in a document that breaks down all of the government programs that the Department of Commerce says Triangle utilizes or benefits from in its tire production, there are 50 programs and subsidies that add up to the 124.53% rate.

What happens next

The Department of Commerce will send instructions to U.S. Customs and Border Protection in 35 days — after the notices are published in the Federal Register — to assess these rates.