U.S. Tied to China's Tire

U.S. Implements "Double Counter-Strike" on Chinese Tires

If approved and implemented, China's truck and bus tires will be hit harder again. The U.S. Department of Commerce filed a complaint with CIT as early as April 14, 2017, arguing that the agency's decision was inconsistent with all relevant evidence in anti-dumping and countervailing duty cases. The document on September 1 this year expanded the arguments of USW and endorsed the motion.

"In the analysis of competitive conditions, the majority (ITC commissioner) concluded that due to differences in quality, warranty, grade, and other non-price characteristics of Chinese tires, buyers will purchase higher-priced tires." USW in its The memo said. However, this conclusion has not been supported by substantial evidence.

USW stated that the determination of the ITC of the International Trade Court that most affected the unfavorable prices of the US tire market has not been supported by evidence. “Most people mistakenly concluded that raw material cost prices have fallen and failed to explain why prices have fallen faster than the cost of the aftermarket, and competitors’ imports have been very large.”

Of course, representatives of tire manufacturers from China insist that ITC is very reasonable in making a negative decision, and this also leads to a correct conclusion. Walt Weller, a local tire company's dual-tire tire dealer, said: "We think ITC is indeed correct, and USW's appeal is worthless."

Earlier on January 23, the U.S. Department of Commerce imposed a 9% to 22.57% anti-dumping duty on China Truck Tire Company. The final countervailing duty was 38.61% to 65.46%. On February 14, the US Department of Commerce lowered the countervailing duty rate to 20.98% to 63.34%. The previous USW successfully appealed against the double taxation of Chinese truck and bus tires.