US Department of Commerce Rules Korean Tires Dumping... Hanta's Rate Reduced by 11%p
The Tire Industry Also Accelerates Investment in the U.S.
[Asia Economy Reporter Yu Je-hoon] The U.S. Department of Commerce has made a final determination on anti-dumping duty rates for passenger car and light truck tires from Korea. While the rates for Hankook Tire & Technology and Kumho Tire have decreased slightly compared to the preliminary determination at the end of last year, Nexen Tire's rate has risen marginally.
According to the tire industry on the 25th, the U.S. Department of Commerce maintained its preliminary finding that passenger car and light truck tires from Korea, Taiwan, Thailand, and Vietnam are being dumped in the U.S. market.
In this final determination, the anti-dumping duty rates were partially adjusted. Hankook Tire & Technology's rate was finalized at 27.05%, about 11 percentage points lower than the 38.07% rate at the end of last year, and Kumho Tire's rate was adjusted down by 6.07 percentage points to 21.74%. Nexen Tire's rate was finalized at 14.72%, up by 0.48 percentage points.
This determination will be finalized after the U.S. International Trade Commission (ITC) issues its final injury determination. The U.S. anti-dumping duty process is structured such that the ITC's preliminary injury determination, the Department of Commerce's preliminary dumping determination, and the ITC's final determination all must be completed to finalize the duties.
The domestic tire industry expressed relief that the Department of Commerce's final anti-dumping duty rates, except for Nexen Tire, decreased by about 6 to 11% compared to the preliminary determination, but also showed concern about securing price competitiveness. If the Department of Commerce's final determination is accepted as is by the ITC, the price of Korean tires will inevitably rise accordingly.
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Accordingly, each tire company is preparing countermeasures. While utilizing factories that avoid anti-dumping duties, they are also increasing investments in the U.S. Hankook Tire plans to expand its Tennessee plant in the U.S. by 2022, increasing annual production from 5.5 million units to about 11 million units, and Kumho Tire recently decided to invest approximately 25 billion KRW to expand its Georgia plant in the U.S.
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