This week, the USA International Trade Commission found that China was dumping tyres into the USA market and that such dumping was causing injury to the domestic tyre industry. They also found Chinese subsidisation of tyres and will be imposing both anti-dumping and countervailing duties on these products. The exact duties will be announced on 24 August 2015.
While the Americans have acted on the dumping and subsidisation of tyres, it appears as if the South African producers are busy preparing their own anti-dumping action against China. This is not the first time that an anti-dumping action has been brought against Chinese tyres, but the last attempt didn’t end well, with the matter finally going to court and the court ruling against the domestic industry.
This time may very well be different though, with a very different political team making the decision on how to proceed. The duties being imposed on the USA will also mean that Chinese tyres will need to find a new place to be sold, further dropping their prices into other markets and thus making dumping more likely into those markets.