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5 more years of Chinese OTR tire duties

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WASHINGTON (Feb. 5, 2014) — The U.S. Commerce Department has confirmed that antidumping and countervailing duties on certain OTR tires made in China will continue for five more years.

Published in the Feb. 4 Federal Register, the confirmation from Commerce follows by a few weeks the unanimous decision by the International Trade Commission (ITC) that the U.S. OTR tire industry continues to be threatened by material injury through the importation of Chinese OTR tires at less than fair value.

The duties have existed since August 2008, when Commerce and the ITC ruled in favor of Titan Tire Corp. and the United Steelworkers union in their petition against Chinese OTR tire manufacturers.

In August 2013, the ITC instituted a routine review of the duties, as mandated by the Uruguay Round Agreements Act.

Representatives of the Chinese tire makers failed to appear at a November 2013 hearing, making the renewal of the duties pro forma at that point.

Although the Chinese tire makers did not appear at the meeting, they continue to fight in federal court a 2012 law allowing countervailing duties to be levied against goods from China and other non-market-economy countries.

Having lost last year before the U.S. Court of International Trade, the Chinese tire makers filed an appeal Dec. 27 before the U.S. Court of Appeals for the Federal Circuit, arguing that the new law is unconstitutional.

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With the threat of more tariffs looming, how concerned are you about a trade war?

Very. It could lead to another recession.
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