Tag: tariffs
Triangle moving to make its mark in Europe
In 2016 Triangle Tyre completed its initial public offering (IPO) on the Shanghai Stock Exchange. Back then Triangle’s top management promised that the company would invest in expanding its position in key markets – including Europe. Sure enough, in 2017 a new European leadership team was appointment and shortly afterwards a new European headquarters was opened in Milan. But around the same time, European anti-Chinese truck tyre import duties were also introduced. For many companies this meant the end of Chinese truck tyre business in tariff areas. So how has Triangle faired in this adverse business climate? Nearly two years after their appointment, Tyres & Accessories caught up with Triangle executives Corrado Moglia, general manager – Europe; Angelo Giannangeli, European marketing director; and Mirco Spiniella, business development director Europe in order to answer that question.
Have the truck tyre import tariffs ‘worked’?
The size of the UK truck tyre market by sell-out unit volume fell 9.8 per cent in 2018 set against the backdrop of European import tariffs, according to GfK data presented at Autopromotec 2019. But what do the tell us about the effectiveness of the tariffs?
US tariffs hit Chinese alloy wheel exports
Following the US’s implementation of 25 per cent import tariffs on Chinese aluminium wheels on 1 May, China exported 70,400 metric tonnes of aluminium alloy wheels in April, down 9.6 per cent compared with the previous month and down 11.6 per cent compared with the year before. However, while down Chinese wheel exports in April were above their recent low point. In February exports dipped to the lowest in five years at 53,700 tonnes.
USA sets final duties on CV steel wheels from China
The USA has determined the rate of anti-dumping and countervailing duties it will charge on steel commercial vehicle wheels imported from China, and the levels set are high. This month, the US Department of Commerce announced final anti-dumping duties of 231.7 per cent and countervailing duties of 457.1 per cent.
USA increasing tariffs on US$200 billion of Chinese imports…including tyres
In the USA, the recent United States Trade Representative (USTR) Section 301 investigation exploring potential tariffs on a range of Chinese imports has reported back. After tariffs of 10 per cent were put into place in September, the planned increase to 25 per cent in January was delayed while trade talks continued.
Vellco Tyre Control sets sights on European retreading markets to establish growth
Vellco Tyre Control will seek to capitalise on increased optimism in the European tyre retreading market by expanding its casing supply business into new territories. Retreaders of commercial vehicle tyres were given a boost last year when the European Union introduced tariffs on certain new Chinese products in the segment, which have long caused headaches among retreaders due to their low price. The independently owned casing dealer and used tyre specialist from Weaverthorpe, North Yorkshire is engaged in the procurement, grading and sale of tyre casings of all types, including car, van, truck, agricultural, industrial, and earthmover. In addition to targeting selected European clients, Vellco said it would simultaneously consolidate and strengthen its position in key global markets such as South America and Africa.
2018 has been ‘Up in the air’
When it comes to reviewing 2018, two words sum up the kinds of talking points virtually everyone has touched on this year: tariffs and Brexit. Indeed it has to be said that 2018’s two meta-themes are not entirely separate from one another. Nevertheless, both have this in common. For most of the last twelve months details of both subjects have been “up in the air”, leaving the rest of us to forecast (which often means speculate) exactly what is going on. See page 32 for further analysis of what has been going on this year as well as coverage of a couple of stories that are emblematic of these themes.
EU publishes definitive anti-subsidy and updated anti-dumping rates
The European Union has published its definitive decision relating to anti-subsidy duties imposed on Chinese-produced truck tyres imported into the continent. This follows the EU’s final decision on anti-dumping duties, which was released on 18 October 2018. In short, the latest document (which runs to well over 120 pages) demonstrates how large subsidies have supported some Chinese tyre makers. However, it doesn’t mean the overall per tyre rate importers have to pay will change.
US market receives first Magna OTR tyre production from Thailand
One way of avoiding anti-dumping duties applicable to tyres imported from China is not to import tyres from China. This is what Magna Tyre Group is now doing in the USA – the company is meeting increased demand for OTR tyres in this market by expanding its production capacity in Thailand. Tyres made in this facility, comments Magna, are don’t attract tariffs in the USA and thus offer the opportunity for the company to “massively increase our presence on American market.”
Chinese truck/bus tyres: US court partially rejects determination
The U.S. International Trade Commission (ITC) must reappraise its final determination on truck and bus tyres from China after the US Court of International Trade (CIT) only partially sustained the ITC’s determination that the US tyre industry has been neither materially injured nor threatened with material injury by imports of these products.
EU rejects claims Pirelli isn’t related to CNRC and Aeolus
Having published its definitive decision on Chinese-produced truck tyre dumping, the European Union has also rejected claims that Pirelli is not related to either China National Tire & Rubber Co., Ltd (CNRC, which is owned by ChemChina) or Aeolus. Therefore, any tyres made by any of the related companies in China have to be subject to comparable import tariffs.
Michelin predicts significant slowdown in car and truck tyre demand
While presenting its nine-month 2018 results, Michelin has predicted a significant slowdown in passenger and truck tyre market conditions in the second half of the year. However, the well-known tyre manufacturer also predicted “sustained growth” in the speciality sector, which consists of OTR, two-wheel, aircraft and agricultural tyres.
Jiangsu General investing US$300 million in Thailand tyre plant
Jiangsu General Science Technology Co. Ltd. is set to invest around US$300 million in the construction of a tyre manufacturing facility in Thailand. The news follows earlier reports published in the Spring that Jiangsu General was considering Cambodia for the investment.
US puts 10% import tariffs on all Chinese tyres
The Trump administration upped the ante once again in the ongoing trade war between the USA and China on 18 September with the introduction of tariffs on all US$200 billion of imports including basically all categories of tyres, retreads and inner tubes. At President Trump’s direction the additional tariffs will initially be set at 10 per cent and will take effect on 24 September 2018. However, as of 1 January 2019, the level of additional tariffs will increase to 25 per cent.
Do tariffs and trade wars work?
At the time of going to press, the President of the United States of America is mid-way through a state visit to the UK. Before he even landed on British soil, President Donald Trump stirred up controversy by tweeting his disparaging thoughts about London Mayor Sadiq Kahn. Whatever view one might hold about the propriety of Trump’s visit, we all know that 31-gun salutes and tea with the queen are about more than niceties. Sure enough less than 24 hours into the state visit, presidential talk turned to trade, with Trump backing out-going Prime Minister Theresa May to complete Brexit negotiations and promising a “phenomenal” trade deal between the US and UK. But all this is set against the backdrop of all-out trade war between the US and China at the same time that Europe is involved in somewhat more Cold War-esque trade skirmishes with China as well. The questions are: do such measures work? And what do they mean for the tyre business?
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