Mexican Media Brands
India Revives Dumping Sanctions on Chinese Truck, Bus Tires
India’s government has resumed anti-dumping tariffs on truck and bus tires from China to help protect its domestic tire industry.
#economics
Share
India’s government has resumed anti-dumping tariffs on truck and bus tires from China to help protect its domestic tire industry.
India’s Automotive Tire Manufacturers’ Assn. successfully argued to revive a punitive tax imposed in 2010 that had expired in March 2016. The original levy averaged $450 per metric ton of truck tires, or $25 per tire. The new tax averages $352 per tonne.
ATMA says China resumed dumping at below-cost prices after the original levy was removed, suddenly tripling sales of their truck and bus tires to 120,000 units per month. The association adds that most such sales have been made through imports by small operators.
Indian tiremakers complain that the more than $5 billion of new capacity they installed over the past three years has gone largely unused because of the dumping.
About 40% of replacement truck and bus tires sold in India are imported, and China controls more than 90% of that segment, according to the trade group. It says India’s annual market for imported tires has doubled to 14.2 billion rupees ($219 million) in the past four years.
ATMA members claim they also are handicapped by a 25% tax on imported raw rubber for their domestically produced tires. Imported tires normally carry a 7% import tax.
RELATED CONTENT
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Study: Border Tax, NAFTA Exit Would Hurt U.S.
The U.S. auto industry would lose at least 31,000 manufacturing jobs and 450,000 units of annual sales if the U.S. imposes 35% tariffs on cars from Mexico, as President-elect Donald Trump has vowed to do.