Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Best Places to Work
    • Rubber Division IEC
    • War in Ukraine
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • Airless Tires
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • Ask the Expert
    • Healthcare Elastomers Conference
    • Rubber In Automotive Conference
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 26, 2018 02:00 AM

Editorial: Positive outcome not likely if trade war escalates

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Leo Michael

    The effect of tariffs and duties on the tire and rubber product industries is still debatable, because they are so new. But they portend nothing good.

    President Trump announced 25 percent tariffs on imported steel and 10 percent tariffs on imported aluminum March 8. Canadian and Mexican imports were provisionally exempted almost immediately, with promises for further exemptions for the European Union, South Korea and other countries.

    But there was no exemption for tire-quality steel wire rod, as the U.S. Tire Manufacturers Association requested. And the problem was compounded March 26 when the U.S. Department of Commerce levied stiff antidumping duties against 10 countries that import steel wire rod to the U.S., including three—South Korea, Spain and the United Kingdom—that import tire-quality rod. The duties against steel wire rod imports from those three countries range from 11.08 to a whopping 147.63 percent.

    Domestic tire makers, along with other industries dependent on imported wire rod, can apply to Commerce to obtain exemptions from the steel and aluminum tariffs, based on the importance of their product to national security. How liberal the government will be in granting these exemptions is yet to be seen.

    Meanwhile, the Office of the U.S. Trade Representative has scheduled a May 15 hearing on the list of 1,200 products imported from China that it released March 22. All these products, USTR said, are potentially facing 25 percent tariffs.

    At least 10 product categories—including tubes, pipes, hoses, aircraft tires, retread tires, retread rubber and machines for planing, milling or molding hard rubber—have the potential to affect domestic companies dependent on those products.

    Also, the Chinese government has issued its own list of U.S. goods that may face Chinese tariffs. The list includes automobiles and aircraft, which obviously would affect U.S. tire and rubber product manufacturers.

    Furthermore, China also has announced tariffs on styrene imports from the U.S., South Korea and Taiwan, pushing Chinese styrene prices higher, according to the consulting firm Wood Mackenzie.

    The full effect of these actions will become apparent in the next several months. It will not be a pleasant wait.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Sustainability, circularity require full tire industry buy-in
    2
    VMI outlines tire technology upgrades for efficient, sustainable manufacturing
    3
    Toyo development could yield CO2-derived butadiene rubber
    4
    Michelin to invest $100 million in Kansas ag plant
    5
    Sumitomo Chemical ending SSBR, EPDM production
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Best Places to Work
      • Rubber Division IEC
      • War in Ukraine
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • Airless Tires
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • Healthcare Elastomers Conference
        • Rubber In Automotive Conference
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION