WASHINGTON—The U.S. Department of Commerce has voted to initiate antidumping and countervailing duty investigations to determine whether passenger vehicle and light truck tires from South Korea, Taiwan, Thailand and Vietnam are being dumped in the U.S.
Commerce's decision is in response to petitions filed in early May by the United Steeworkers union, which claims tire producers from these regions are dumping their products in the U.S. at margins ranging from as low as 5.48 percent (Vietnam) to as high as 217.5 percent (Thailand).
The CVD investigation will focus on Vietnam, Commerce said, in order to determine whether producers of P/LT tires in Vietnam are receiving unfair government subsidies.
Commerce said it will investigate 20 subsidy programs, including tax programs, government provision of goods for less than adequate remuneration, import substitution subsidies, grants, government provided loans and Vietnam's allegedly undervalued currency. This is the first time that Commerce has initiated an investigation of alleged currency subsidies in relation to a foreign currency with a single exchange rate.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission determines that dumped and/or unfairly subsidized imports of P/LT tires from South Korea, Taiwan, Thailand and Vietnam materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The value of P/LT tire imports in 2019 from the targeted countries and Taiwan were approximately valued as follows:
- $1.96 billion for Thailand;
- $1.17 billion for South Korea;
- $496.6 million for Vietnam; and
- $373 million for Taiwan.
Commerce said its preliminary investigation shows dumping percentages of:
- 42.95% to 195.2% for South Korea;
- 20.57% to 116.14% for Taiwan;
- 106.36% to 217.5% for Thailand; and
- 5.48% to 22.3% for Vietnam.
Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to AD duties. Foreign companies that receive financial assistance from foreign governments that benefits those companies' production of goods, and is limited to specific enterprises or industries, or is contingent either upon export performance or upon the use of domestic goods over imported goods, are subject to CVD duties.