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U.S. Formally Launches "Double Anti-" Investigation on China's Tires
On July 31, the U.S. Department of Commerce officially launched an anti-dumping and anti-subsidy investigation into Chinese engineering tires, marking the fifth such merger probe initiated by the U.S. against China within a year. This marks the largest anti-dumping investigation ever faced by the Chinese rubber industry. The investigation covers a wide range of products, including new inflatable rubber tires designed for construction machinery and off-road use—such as agricultural, construction, dump truck, and truck tires.
The dumping investigation period is set from October 1, 2006, to March 31, 2007, while the subsidy investigation spans from January 1, 2006, to December 31, 2006. The alleged dumping margins range between 30.49% and 210.48%, with subsidy rates exceeding 2%. The U.S. International Trade Commission is expected to issue its preliminary determination on injury by August 24, followed by the Department of Commerce’s final rulings on dumping and subsidies on October 3 and December 17, respectively.
The investigation was triggered by a petition filed on June 18 by the U.S. company Titanic Tire Company and the United Steel Workers Union. In their complaint, they claimed that in 2006, China exported over 14.95 million tons of tire products to the U.S., valued at more than $370 million. They further argued that these imports have captured a significant market share and are growing rapidly, causing substantial harm to the U.S. tire industry and posing ongoing threats.
In mid-July, the U.S. International Trade Commission and the Department of Commerce held hearings on the matter. Notably, companies like Bridgestone U.S.A. and Ohio Denman Tire also joined the anti-dumping efforts against Chinese tire exports.
China strongly opposed the U.S. “double reverse†investigation, calling it an abuse of WTO rules. The Ministry of Commerce stated that the rapid initiation of multiple anti-dumping and anti-subsidy investigations against Chinese goods undermines the development of mutually beneficial trade relations. In response, over 30 major Chinese tire companies, along with export distributors, have coordinated a joint defense strategy. The China Minmetals Chemicals Import and Export Chamber of Commerce and the China Rubber Industry Association led the effort to conduct a harmless defense campaign.