After investigation into “unfairly traded” imports of car and light truck tyres by Vietnamese exporters and producers, the US Department of Commerce (Commerce) has ruled preliminarily that these will be subject to import duties. Commerce is scheduled to announce its final determination in the case by March 16, 2021, although this deadline may be extended; it will be the first time the US government has made an affirmative determination in a countervailing duty (CVD) case based on a foreign currency with a “unitary” exchange rate.
According to the United Steelworkers (USW) union, which represents workers in almost every industry, Vietnamese tyre companies have benefited from government subsidies of between 6.23% and 10.08% as well as an undervalued currency, and should not be exempt – the USW filed a complaint against Vietnam in May.
“We are gratified with results of the Department of Commerce’s investigation and acknowledgment that currency manipulation has disrupted our market,” said Thomas Conway, President, USW International, who called for continued vigilance against unfair and illegally traded foreign imports.
In addition to its CVD actions on Vietnamese tyres, Commerce is conducting antidumping duty investigations of passenger tyres from South Korea, Taiwan, Thailand, and Vietnam, with preliminary determinations scheduled to be announced December 29.