Tires Made in Southeast Asia Will Be More Expensive

Jason R. Sakurai
by Jason R. Sakurai

Tires from South Korea, Taiwan, Thailand and Vietnam are about to get more pricey, as the U.S. Department of Commerce (DOC) announced yesterday preliminary duties in the antidumping duty (AD) investigations of passenger vehicle and light truck tires from those countries.

The DOC issued a preliminary decision that passenger and light truck tires imported from South Korea, Taiwan, Thailand, and Vietnam are being sold in the U.S. at less than fair value, or dumped. The dumping margins were calculated at 14.24 to 38.07 percent for South Korea, 52.42 to 98.44 percent for Taiwan, 13.25 to 22.21 percent for Thailand, and 0 to 22.30 percent for Vietnam. The DOC instructed U.S. Customs and Border Protection to collect deposits from tire importers based on those preliminary rates.

The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC, also known as the United Steelworkers Union, petitioned the DOC to investigate alleged dumping and subsidies for the tires. The DOC had already issued a preliminary ruling that Vietnamese tire producers received unfair subsidies associated with their undervalued currency. The DOC calculated duty rates ranging from 6.23 percent to 10.08 percent, with final anti-dumping and countervailing duty decisions by mid-March 2021. The U.S. International Trade Commission (ITC) has already made a determination that the industry in the U.S. is being harmed by alleged dumping and subsidies.

Gardena, California-based Tireco, Inc., is one of the nation’s largest distributors of private-brand wheels and tires, which includes Forté wheels, Sendel wheels, Milestar tires, WestLake tires, and Nankang tires. Taiwan-based Nankang would be among those impacted by a 98.44 percent dumping rate, the highest of any cited.

To date, the DOC maintains 542 AD and countervailing duty decision (CVD) orders which provide relief to American companies and industries impacted by unfair trade.

Since the beginning of the Trump Administration, the DOC has initiated 306 new AD investigations, a 278 percent increase from a comparable period in the Obama Administration. A strange alliance, the AFL-CIO Steelworkers Union and the Trump Administration, or is it?

[Images: Tireco, U.S. Dept. of Commerce]

Jason R. Sakurai
Jason R. Sakurai

With a father who owned a dealership, I literally grew up in the business. After college, I worked for GM, Nissan and Mazda, writing articles for automotive enthusiast magazines as a side gig. I discovered you could make a living selling ad space at Four Wheeler magazine, before I moved on to selling TV for the National Hot Rod Association. After that, I started Roadhouse, a marketing, advertising and PR firm dedicated to the automotive, outdoor/apparel, and entertainment industries. Through the years, I continued writing, shooting, and editing. It keep things interesting.

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  • Conundrum Conundrum on Jan 04, 2021

    Got very good service and performance out of some Hankook V12 Evo tires. I guess since Canada has a free trade agreement with South Korea and Walmart here is Nexen Central already, we're going to get some good tires on the cheap here soon.

  • AnalogXer AnalogXer on Jan 08, 2021

    Purchasing Cheap (poorly made) tires is irresponsible and selfish. Anybody want to guess why there are so many accidents on rainy days? I'm convinced the majority prioritize tire life or wet traction. Good quality tires more than offset the cost of increased insurance, injury, vehicle repair, and lost wages caused by accidents. ABS and traction control are not enough to offset crappy tires. Its not just your life, its the life of your family and all you share the road with. //rant off

  • MaintenanceCosts What is the actual out-the-door price? Is it lower or higher than that of a G580?
  • ToolGuy Supercharger > Turbocharger. (Who said this? Me, because it is the Truth.)I have been thinking of obtaining a newer truck to save on fuel expenses, so this one might be perfect.
  • Zerofoo Calling Fisker a "small automaker" is a stretch. Fisker designed the car - Magna actually builds the thing.It would be more accurate to call Fisker a design house.
  • ToolGuy Real estate, like cars: One of the keys (and fairly easy to do) is to know which purchase NOT to make. Let's see: 0.43 acre lot within shouting distance of $3-4 million homes. You paid $21.8M in 2021, but want me to pay $35M now? No, thank you. (The buyer who got it for $8.5M in 2020, different story, maybe possibly.) [Property taxes plus insurance equals $35K per month? I'm out right there lol.] Point being, you can do better for that money. (At least the schools are good? Nope lol.)If I bought a car company, I would want to buy Honda. Because other automakers have to get up and go to work to make things happen, but Honda can just nap away because they have the Power of Dreams working for them. They can just rest easy and coast to greatness. Shhhh don't wake them. Also don't alert their customers lol.
  • Kwik_Shift_Pro4X Much nicer vehicles to choose from for those coins.
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