In the EU, they are calling for new tariffs on Chinese tires
The European Commission has launched an anti-dumping investigation into imports of tires for passenger and light trucks from China after receiving an official complaint from the "coalition against unfair tire imports".
The investigation was officially launched on May 21, and the EC will check the claim made in the petition that Chinese tires are being sold in the European Union at unfairly low prices, damaging European manufacturers. Possible dumping will be studied for the period from January 1 to December 31, 2024.
The petition claims that the dumping margin for Chinese tire imports ranged from 41 to 104%, and tire prices "often fell below the cost of raw materials".
According to the complaint, tires at dumping prices are being sold in Europe in both the primary and secondary markets in the lower, middle, and upper segments, and Chinese manufacturers are benefiting from significant government support, as well as other factors affecting supply chain operations. These, in the opinion of the petitioners, include "preferential access to finance and land, the ability to buy raw materials such as synthetic rubber, technicarbon, and metal cord at below-market prices, as well as policies that stimulate export sales".
It is also noted that since 2021, imports of Chinese tires to the EU have grown by 51%, with particularly significant growth in the budget segment. As a result, "there has been a decline in production, a reduction in profits, job losses, and impending plant closures across Europe".
"There is no doubt that the deterioration in the situation of the European industry is the result of the huge pressure from Chinese imports," the petition says, adding that imports from other regions "are significantly smaller in volume but significantly more expensive in price than supplies from China".
The petitioners point out that the current situation has led to the fact that budget tires are increasingly dominating the market, and European manufacturers are being "pushed into the upper segment, where their sales and profits are declining as a result of inter-level competition". As a result, the industry is "actively adapting" to the new situation by optimizing capacities and preserving investments, but the pressure from imports is too strong, so "only duties in the full amount of the dumping margin will be sufficient to eliminate the damage to the European industry".
The European Commission will consider all the allegations of dumping and determine whether it is necessary to introduce new duties. If the answer is positive, temporary measures may be introduced within a few months, after which a final decision will be made.
Currently, the EU already has additional duties on imports of truck and bus tires from China.
Photo: Tyrepress.com