It is reported that the Department of Commerce has decided to impose a preliminary countervailing duty of 15.69% on imports of tires from China. There are a few individual companies who have received either higher or lower penalties:
AKC Note: This seems to be quite a significant move by DoC as countervailing duties are applied when DoC identify: “financial assistance from foreign governments that benefit the production of goods from foreign companies and are limited to specific enterprises or industries, or are contingent either upon export performance or upon the use of domestic goods over imported goods.”
The DoC is still studying whether there is a case for anti-dumping duties to also be charged on imported Chinese tires. In 2012 when the previous penalties on Chinese tire imports expired the total number of tires imported to the U.S. from China was 28.6 million. In 2013 this jumped to 45.6 million and after 9 months of 2014 imports are up a further 19% to 41 million. China’s share of the import market has risen from 22.7% in 2012 to 36.2% in 2014 YTD.
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