THE REPUBLIC OF KOREA, TAIWAN, THAILAND, AND THE SOCIALIST REPUBLIC OF VIETNAM
WASHINGTON – Today, the U.S. Department of Commerce announced the initiation of new antidumping (AD) and countervailing duty (CVD) investigations to determine whether passenger vehicle and light truck (PVLT) tires from the Republic of Korea (Korea), Taiwan, Thailand, and the Socialist Republic of Vietnam (Vietnam) are being dumped in the United States, and to determine if producers in Vietnam are receiving unfair subsidies.
The petitions were filed by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (Pittsburgh).
In the AD investigations, Commerce will determine whether imports of PVLT tires from Korea, Taiwan, Thailand, and Vietnam are being dumped in the U.S. market at less than fair value. The alleged dumping margins are as follows:
42.95 – 195.20 percent for Korea
20.57 – 116.14 percent for Taiwan
106.36 – 217.50 percent for Thailand
5.48 – 22.30 percent for Vietnam
In the CVD investigation for Vietnam, Commerce will determine whether Vietnam producers of PVLT tires are receiving unfair government subsidies. Commerce will investigate 20 subsidy programs, including tax programs, government provision of goods for less than adequate remuneration, import substitution subsidies, grants, government provided loans and Vietnam’s allegedly undervalued currency. This is the first time that Commerce has ever initiated an investigation of alleged currency subsidies in relation to a foreign currency with a single exchange rate.
If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized imports of PVLT tires from Korea, Taiwan, Thailand, and Vietnam materially injure, or threaten material injury to, the U.S. industry, Commerce will impose duties on those imports in the amount of dumping and/or unfair subsidization found to exist.
The 2019 imports of PVLT tires from the countries under investigation were approximately valued as follows:
$1.17 billion for Korea
$373.0 million for Taiwan
$1.96 billion for Thailand
$469.6 million for Vietnam
Read the fact sheet on today’s decisions.
Next Steps:
During Commerce’s investigations, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being injured by such imports. The ITC will make its preliminary determinations by July 17. If the ITC preliminarily determines that there is reasonable indication of material injury or threat of material injury, then Commerce’s investigations will continue, with the preliminary CVD determination scheduled for August 26, and preliminary AD determinations scheduled for November 9, unless these deadlines are extended.
