US Commerce Department says Chinese OTR tyre imports are subsidised

Washington DC -- The US Commerce Department has made a preliminary determination that Chinese off-the-road (OTR) tyre manufacturers are receiving subsidies from the Chinese government as they import products to the US.

The subsidy rate is 6.59 percent for Tianjin United Tire & Rubber International Co. Ltd., 3.31 percent for Guizhou Tyre Co. Ltd., 2.38 percent for Hebel Starbright Tire Co. Ltd. and 4.44 percent for all other Chinese OTR tyre makers, according to the department.

Titan International Inc. and the United Steelworkers, which partnered to file a countervailing and anti-dumping complaint seeking duties against Chinese OTR tyre imports, said they were pleased with the Commerce Department ruling.

Titan President and CEO Maurice Taylor Jr. said it was the obvious conclusion.

“This was the simplest thing (to find), because it's what the Chinese government admits to,” Mr. Taylor said. “A blind dog could have found that one.”

Commerce Dept. now has until Feb. 20 to make its final subsidy determination in the case. If it affirms that Chinese OTR tyre makers are being subsidised, the case will go back to the International Trade Commission, which will decide finally whether US OTR tyre makers suffer material injury because of Chinese imports.

From Tire Business (A Crain publication)

Press release from United Steelworkers