Biden Wins US Presidential Election... What Will Happen to 'Tire Anti-Dumping' Tariff Rates?

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] As Joe Biden, the Democratic presidential candidate of the United States, was elected as the 46th president on the 7th (local time), the domestic tire industry is busy analyzing the post-election impact. This is because the result of this election is expected to influence the U.S. anti-dumping tariff decisions.

According to the tire industry on the 7th, the U.S. International Trade Commission (ITC) recently extended the deadline for announcing the preliminary investigation results on anti-dumping tariffs for tires from Korea, Vietnam, Taiwan, and Thailand by 50 days. Accordingly, the U.S. Department of Commerce (DOC) postponed the announcement of its preliminary investigation results from the 9th of this month to the 29th of next month. Although the ITC did not specify the exact reason for the extension, the tire industry speculates that the U.S. administration focused its administrative power on the presidential election.

The tire industry is holding its breath and closely watching the extension of the preliminary investigation results announcement, which will serve as a barometer for anti-dumping tariffs. This is because the tariff rates could fluctuate significantly depending on who is decided as the U.S. president. A tire industry official explained, "The best-case scenario is to be judged as not subject to anti-dumping," adding, "However, since this is not an easy situation, how the tariff rates are determined is more important."

In particular, there is an expectation that tariff rates may be reduced if the administration changes to Biden. This anti-dumping response was carried out under President Trump's strong protectionist trade policy. President Trump has frequently conducted anti-dumping investigations in major manufacturing sectors such as steel and tires, and this year threatened to impose automobile tariffs on the European Union (EU) citing lobster tariffs. On the other hand, according to the Bank of Korea’s report titled ‘Impact of the U.S. Presidential Election on Major Global Issues,’ if Biden is elected, there is a high possibility that global trade sentiment will improve through the restoration of a multilateral system, including reducing retaliatory tariffs.

Along with this, the tire industry is actively appealing that high tariff rates could also be disadvantageous to U.S. consumers. A tire industry official introduced, "If tariff rates increase and tire prices rise, the range of choices for U.S. consumers will narrow accordingly," adding, "We are actively conveying this message."

Meanwhile, the U.S. anti-dumping sanctions are undergoing preliminary rulings until this year, and the final ruling is expected around June next year. Once the final ruling is made, the DOC’s tariff imposition order is scheduled no later than July next year.

This content was produced with the assistance of AI translation services.