U.S. adjusts some import duties on truck tires from China

WASHINGTON—The U.S. Department of Commerce is amending countervailing duties on truck and bus tires imported from China for a handful of companies following an administrative review of the elevated duties imposed in February 2019.

The Commerce Department's notification of revised duties was published Aug. 24 in the Federal Register. Commerce published its intention to review the duties in December 2021.

The new producer/exporter subsidy rates are:

• Prinx Chengshan (Shandong) Tire Co. Ltd.—17.85 percent;
• Qingdao Ge Rui Da Rubber Co. Ltd.—17.48 percent;
• Seven other companies were assessed 17.51 percent CV duties—Jiangsu General Science Technology Co. Ltd.; Qingdao Awesome International Trade Co. Ltd.; Qingdao Doublestar Tire Industrial Co. Ltd.; Shandong Haohua Tire Co. Ltd.; Shandong Huasheng Rubber Co. Ltd.; Shandong Kaixuan Rubber Co. Ltd.; and Triangle Tyre Co. Ltd.

In some cases, the CVD rate was reduced from 42.1 percent due a "ministerial" error, which the agency defines as "errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other type of unintentional error which the administering authority considers ministerial." 

The reductions are not expected to have a measurable impact on imports, since the Trump administration's 10 percent duties are still in place on many Chinese goods, including tires, along with the 25 percent Section 301 tariffs.

The existing antidumping duty of 4.5 percent is still in place as well.

Taken altogether, the best rate any of the Chinese companies can expect is still 46 percent or greater.

Nonetheless, truck tire imports from China have rebounded from the "trough" of 2021 and are running through mid-2022 at an annualized pace of over 1.8 million units. China—the No. 1 source of imported truck/bus tires from 2004 through 2019—has climbed back up the ladder to sit at No. 4 now, behind Thailand, Vietnam and Japan.

Tire Business reached out to those companies with U.S.-based representation for comment. 

"The reduction of the CVD on TBR tires to 17.51 percent from 42.16 percent to 17.51 percent has certainly been welcome news for Triangle Tire USA and our dealers," Triangle TIre USA CEO Campbell Metcalfe said. He noted Triangle TBR tires historically have been lauded by tire dealers and end users for high performance and quality.

"Now, we can be more competitive in pricing. It is a distinct advantage for our dealers to be able to combine Triangle TBR tires with their orders for our OTR and ST tires.

"Encouraged by this decision and the fact that ocean freight rates are finally dropping, we are currently growing our domestic inventory footprint. Triangle is very much committed to the U.S. market, and we appreciate the ongoing support from our dealers."

TBB Tires, a subsidiary of Jiangsu General Science Technology and importer of the GS- and TBB-brand truck tires, welcomed the reduction in the CVD rate, but didn't think it was sufficient for it to reconsider sourcing tires from China.

JGST opened a plant in Thailand in 2019,and is planning to bring a plant in Cambodia on stream before year-end.

TBB imports most, if not all, of the tires it sells in the U.S. from the Thai plant.

In addition to the antidumping, countervailing and special duties on truck/bus tires from China, TBB said it has observed that containers of products subject to AD and CV duties, regardless of the origin, have a much higher chance of being held and inspected by Customs and Border patrol

This can add up to $10,000 in additional costs per container due to the processing time and fees, the company said.

Prinx Chengshan is in much the same position as TBB Tires: The additional import duties other than the CV duties make it cost-prohibitive to import from China.

"As long as there is CVD plus section 301 tariffs of 25 percent, I don't see us bringing any TBR tires from China anytime soon," Ken Coltrane, vice president, marketing, for Prinx Chengshan Tire North America, told Tire Business.

And much like TBB Tires, Prinx Chengshan has a plant in Thailand from which it can source tires. Production at that plant, in Chonburi, began in early 2020.

Prinx Chengshan was founded in 1976 and listed on the main board of the Hong Kong Stock Exchange last October. It sells under the Austone, Chengshang, Fortune and Prinx brands.

It operated as joint venture with Cooper Tire from 2005 until 2014, when the business' owner, Chengshan Group Co. Ltd., exercised an option to buy out Cooper's share.

Goodyear—which owns Qingdao Ge Rui Da Rubber via its acquisition of Cooper Tire & Rubber in 2021—declined to address the issue directly.

"Goodyear regularly reviews and adjusts its manufacturing footprint. Any decisions related to future production would be based on an evaluation of market demand signals, inventory and supply," the company said in a statement.