Hankook, ATD move out ahead of tire duties — Panjiva


Hankook, ATD move out ahead of tire duties

Cons. Discr. - Autos 1125 South Korea 553 Taiwan 191 Tariffs 1771 Thailand 124 U.S. 5260 Vietnam 345

The U.S. International Trade Commission determined that imports of passenger and light truck tires (PVLT) from South Korea, Taiwan and Thailand had been dumped in the U.S. market below cost. Additionally it also determined  that imports from Vietnam were subsidized by the Vietnamese government but were not otherwise dumped and terminated that section of the case. More information on the terms and assessment of trade infractions can be found in Panjiva’s primer on the topic. 

The ITC has determined that antidumping duties of 14.6% to 101.8% should be applied to imports from South Korea, Taiwan and Thailand. The countervailing duties on Vietnam applied under a novel rule covering currency manipulation, discussed in Panjiva’s May 26 research, range from 6.2% to 7.9%. 

U.S. imports of PVLT from Vietnam were increasing even before the dismissal of the dumping case, Panjiva data shows, up by 23.7% year over year in Q1 and increasing to 33.8% year over year in April. This is robust to the impact of the pandemic as well, with imports in 2019 against the same periods up 38.5% in Q1’21 and 85.4% in April. 

South Korea, Taiwan, and Thailand may take the brunt of any trade shifts with imports in Q1’21 falling by 12.2% year over year and in April falling by 9.8% year over year, while other importers have seen imports increase by13.0% year over year in Q1. Those three countries accounted for 30.8% of U.S. imports in Q1’21, down from 37.3% in 2020.

Vietnam avoids dumping duty drag

Chart segments U.S. imports of passenger and light truck tires by origin. Source: Panjiva

Leading importers from the three countries covered by the antidumping duties include Hankook, ATD, Sumitomo, and Nexen. Hankook and ATD saw the largest falls in associated U.S. seaborne imports, with declines of 77.8% and 91.4% year over year respectively in Q1’21. They have continued to fall subsequently with declines of 66.9% in the case of Hankook in April and May combined while ATD’s fell by 93.6%. The companies may have started moving away from the target countries once the case was initiated. 

Sumitomo and Nexen may have taken another course, with imports in Q1’21 down by 0.4% year over year and 4.7% year over year respectively but then increasing by 32.8% and 7.4% year over year in April and May. That may indicate that the firms increased imports from those countries to stockpile goods before the duties were applied. 

Hankook, ATD slash tire shipments from targeted countries

Chart segments U.S. seaborne imports of PVLT from South Korea, Thailand and Taiwan by consignee on a three-month average basis. Source: Panjiva

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