According to local media, the U.S. duties probe into tires imported from China will not adversely impact Taiwanese tiremakers. The China Post reports that Taiwanese tire companies will diffuse risk by allocating orders to factories elsewhere.
The U.S. International Trade Commission voted 6-0 on July 23 to advance the United Steelworkers petition for anti-dumping and countervailing duties on consumer tires imported from China.
Taiwanese tiremakers with factories in China include Cheng Shin Tire, Hwa Fong Rubber, Nankang Rubber Tire Corp. and Kenda Tires. These companies “categorically dismiss” the market’s concern about the U.S. tariffs, saying that they can reduce the risk by leveraging their factories in Taiwan and other Southeast Asia nations, according to The China Post.
If the U.S. decides to impose anti-dumping and import duties, Cheng Shin said it will transfer some orders from Kunshan Plant in China to its factories in Changhua, Douliu of Yunlin County, as well as Thailand.
Hwa Fong Rubber, Federal Corp. and Nankang also told The China Post that they are keeping a close watch on the ITC’s probe while gearing up for the production transfer.
Kenda expects the reports of the ITC’s probe to trigger upswing in Kenda’s tire price and shipments to the U.S., the newspaper said.
