By on December 31, 2020

tiresTires 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.

tires

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.

Tires

 

tires

tires

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.

Tires

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.

tires

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]

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27 Comments on “Tires Made in Southeast Asia Will Be More Expensive...”


  • avatar
    mcs

    The title of the article is a little misleading. For the record, Taiwan and especially South Korea are not in Southeast Asia.

  • avatar
    MRF 95 T-Bird

    Southeast Asia is Vietnam, Laos and Cambodia. You can imagine the ads. “Those tires have great grip for traveling on the Ho Chi Minh trail”.

  • avatar
    CKNSLS Sierra SLT

    Once again proving that Labor Unions drive up the cost of goods…..

  • avatar
    Lou_BC

    I see Yokohama on the list. I just put a set of Yokohama Geolander A/T GO15’s on my truck. They work well in the winter. Price wise they around $100 less than a set of GoodYear Duratrac’s.

    I’d suspect that some of the tires that hit the market aren’t really being “dumped”. They are just sub-standard cheepo tires.

    • 0 avatar
      tankinbeans

      Are the similar to the spare tires from A Christmas Story, in that they are round and might once have been made of rubber?

      The last tires I bought were made in the Netherlands after I replaced the OEM tires. The tires that came on my car from the dealer were a bit crap.

    • 0 avatar
      Scoutdude

      Well dumping is supposed to be based on the price they are sold in their home country vs what they are sold for in the US.

      Which could be attributed to what the market will bear in the respective country. IE in the home market they can get more because better tires aren’t available and in the US crap tires won’t sell unless they are really cheap.

    • 0 avatar
      RHD

      This will affect the tire dealers who make more profit by marking up cheap tires than selling quality tires with less margin. Most of those brands are substandard and should not be on anyone’s vehicle!
      (Google “tire brands to avoid”.)

      I was recently looking for a set of tires on Craigslist by tire size, to help a friend who was low on cash. One seller had a set of Chinese tires that he took off his car as soon as he had bought it, and wouldn’t even post the brand on his ad, since he figured it would keep people from replying. He was asking $120.00 for four new tires… I wouldn’t take them if they were offered for free.

    • 0 avatar
      twincamry

      Fun fact @Lou_BC. I also got a set of Yokohama Geolander A/T GO15 mounted on my Element in November 2020. All four were made in the USA according to the side wall and label that came on them from Tire Rack. So their chart online (here: https://www.tirerack.com/tires/Spec.jsp?tireMake=Yokohama&tireModel=Geolandar+A%2FT+G015 (see: “COUNTRY OF ORIGIN*”)) is either old or wrong, or both since my June 2020 date code 215/70R16 set of 4 were all made in the USA.

      • 0 avatar
        N8iveVA

        I had a set of Geolanders on my ’05 Escape. I liked em, they were much better than the horrible Continental Contitracs that came on it. I thought that the Yokohamas were make here in my home state of Virginia.

      • 0 avatar
        Lou_BC

        10 ply LT truck Geolander A/T GO15’s are very different than than a P metric SUV tire. I was amazed at the difference when I looked at then at the tire shop.

  • avatar
    ToolGuy

    First table:
    Whatever you do, do not divide the “Value (USD)” figure by the “Volume (number of tires)” figure. [This would yield a useless and misleading number. Leave professional things to professionals.]

  • avatar
    PrincipalDan

    I have certainly seen some “no-name” tires on the vehicles of people who certainly had enough money to buy something higher end regardless of country of manufacture. (Like a colleague making nearly $100,000 a year who had “Linglong Tires” on her Pilot.)

    • 0 avatar
      Lou_BC

      Only a DingDong would buy LingLong

    • 0 avatar
      Scoutdude

      An unfortunate number of people ask for “what ever is the cheapest” or they put it off so long that they take whatever is in stock so it can be done today.

      Then there are those that will think that the person is trying to “sell them” so they could make more money, if they suggest anything but the cheapest.

    • 0 avatar
      ToolGuy

      This guy brought data:

      https://youtu.be/CFhkF2vAaSQ

      [Related: My wife’s last two vehicles have been the only ones in the family fleet with real-live Michelins. I have decided she doesn’t appreciate them (drives right over bumps in the road, instead of avoiding them like the anal-retentive men in my family). Won’t make that mistake again.]

  • avatar
    Jeff S

    I don’t necessarily believe in buying the cheapest tires but I don’t buy the most expensive ones anymore because I put less than 5k miles per year on my vehicles since I work from home and don’t drive as much. The last few times I have replaced tires it was because they were older than 7 years old but the treads had hardly any wear. Tires can degrade after 7 years and the 7 years is from the production date. In the past I gave my old tires to my landscaper who would use them on his hay wagons. There is a place for less expensive tires that are safe but I agree if tires are not safe you should not use them regardless of how cheap they are.

  • avatar
    schmitt trigger

    Those small rubber to road contact surfaces, a couple dozen square inches at most, is what prevents one from losing the control of that kinetic energy of a 7000 pound vehicle speeding 75 mph.

    • 0 avatar
      CKNSLS Sierra SLT

      schmitt trigger-

      You are right. But tire failures (for any reasons) are not that frequent. In the state where I live 2nd and 3rd tier tires are very popular.

  • avatar
    conundrum

    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.

  • avatar
    AnalogXer

    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

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