In a statement, the U.S. Commerce Department said, tires for cars and light truck from Vietnam are being unfairly subsidized given that its currency is undervalued. The development marks the first finding of its kind by the US Commerce Department.
In its final determination in the trade case, the US Commerce Department said, “Tires from Vietnam are being subsidized at a rate ranging from 6.23% to 7.89% through the conversion of U.S. dollars into Vietnamese dong at an undervalued exchange rate”.
Its investigation also found that tires exported from Taiwan, South Korea, Thailand and Vietnam had been dumped at below-market rates in the US.
While tires from Taiwan were dumped at a rate of up to 102%,the same from South Korea were dumped at a rate of up to 27%, up to 21% from Thailand and at up to 22% from Vietnam, said the US Commerce Department.
It went on to add, “In 2020, U.S. imports of car and light truck tires were valued at approximately $1.2 billion from South Korea, $373 million from Taiwan, $2 billion from Thailand and $470 million from Vietnam”.