SHANGHAI (Dec. 30, 2009)—China's tire exports to the U.S. dropped 37.5 percent in October to $130 million, the lowest one-month total in nearly four years, according to statistics released by Chinese customs.
The drop coincides with steep anti-dumping duties the U.S. imposed Sept. 26 on China-made consumer tires. As a result, there's a 10- to 15-percent surplus tire manufacturing capacity in China, the customs report said.
To avoid the risks, some South Korean tire makers already have decided to relocate their facilities to other countries from China, it added.
Since September 26, China-made passenger vehicle and light truck tires imported into the U.S. have been subjected to an additional 35 percent import duty for the duration of a year. The duty will be lowered to 30 percent in its second year and 25 percent in its third year.