Monday the U.S. Commerce Department said it appears that Chinese-made passenger car and light truck tires are subsidized by the Chinese government and are being “dumped” here, below cost. Because of this they will impose punitive tariffs ranging from 17.7% to 81.3%. This finding will be reviewed next year.
The tariffs are retroactive for 90 days, hitting importers who began stockpiling Chinese tires when it appeared the government might act. In July, the Commerce Department’s International Trade Commission (ITC) had determined that these tire imports from China might be “materially” injuring the US tire industry, and and began stockpiling Chinese tires. They will now have to pay the tariff anyway.
In 2009 the Obama took action against China for the same thing, imposing tariffs for 5 years. That action expired and China again began dumping tires here below cost. Imports of Chinese-made tires have more than doubled since 2011, causing loss of jobs here.