The U.S. International Trade Commission has determined that PLT tire imports from South Korea, Taiwan and Thailand have “injured” the U.S. tire industry.
On Wednesday, the commission made affirmative determinations in the final phase of its antidumping and countervailing duty investigations regarding PLT tires imported from Thailand, Taiwan, South Korea and Vietnam. The commission decided the following:
- It upheld countervailing duties set by the Department of Commerce for PLT tire imports from South Korea, Taiwan and Thailand. In May, Commerce issued antidumping rates by region and manufacturer, which you can find here.
- It also voted to terminate the anti-dumping investigation on imports of PLT tires from Vietnam, due to a finding of negligibility; however, it affirmed the countervailing duties on PLT imports from the country. The countervailing duties on Vietnamese tire imports range from 6.23 percent to 7.89 percent, according to the ITC.
The countervailing duty investigation marks the first final affirmative determination that Commerce has made regarding a foreign currency with a unitary exchange rate. This specific investigation involved a currency-related subsidy involving the conversion of U.S. dollars into Vietnamese dong at an undervalued exchange rate.
Both cases started in May last year when The United Steelworkers Union (USW) filed antidumping and countervailing duty petitions on “dumped and subsidized” PLT tires from the four countries with the Department of Commerce and the International Trade Commission.
In June 2020, the Commerce Department formally opened an investigation, and in May this year, it made its final determination that tires from the four countries were being dumped at below market value.
In a statement posted on its website, the USW “welcomed” the ITC’s final affirmative determination on “dumped and subsidized” PLT tires from Korea, Taiwan, Thailand and Vietnam.
“Time and time again USW members lead the fight to protect their jobs and their communities from the devastating effects of unfair trade and ensure a level playing field for domestic producers,” said USW International President Tom Conway. “This case was no different. I’m proud of all the hard work our members do every day, not just in making high-quality tires but also in safeguarding this vital industry.”
Now with the commission’s final determination, the Commerce Department has seven days to issue anti-dumping and countervailing orders.
The ITC is currently scheduled to make its final injury determinations on or about July 5. If the ITC makes affirmative final injury determinations, Commerce will issue antidumping and/or countervailing duty orders. If the ITC makes negative final determinations of injury, the investigations will be terminated, and no orders will be issued.
