Tariffs soared 56%, and tire exports were hit from all sides
Chinese truck and bus tires are being targeted again. The latest anti-dumping investigation results of Egypt are out, and even Chinese truck tires in Thailand are not spared!
01 The highest tariff is 56%
According to the China Trade Relief Information Network, on February 9, 2025, the Egyptian Ministry of Investment and Foreign Trade issued Announcement No. 4 of 2025 in the official gazette. The final result of the mid-term review of anti-dumping against Chinese and Thai truck and bus tires is out, and it is decided to adjust the anti-dumping duties on truck and bus tires originating in China and Thailand.
After the adjustment, the Chinese tax rate is 22% to 56% of the landed price; the Thai tax rate is 6% to 20% of the landed price. The anti-dumping cycle of this tax rate is two years.
This is the fourth country to announce the anti-dumping investigation results of Thai truck tires since 2024.
02 Increased risks in the Thai tire business
Although Thailand has become one of the important production bases of global tire companies due to its unique raw material supply advantages. Tire companies not only increase their capital here, but some even let this place take over the production capacity supply after the closure of North American factories.
However, because of the price advantage brought by the cost advantage here, many countries have believed that Thai tire production is unfair to other countries since 2008, thus starting a series of anti-dumping and anti-subsidy "threats". Chinese companies that have deployed tire production capacity here have once again felt the nightmare of anti-dumping and anti-subsidy.
On May 2, 2024, the Executive Committee of the Brazilian Foreign Trade Commission (GECEX) issued Resolution No. 583 of 2024, deciding to include tire components with rim sizes of 20 inches, 22 inches and 22.5 inches originating from China, South Korea, Japan, Russia and Thailand in the scope of taxation.
As early as 2008, Brazil had launched an anti-dumping investigation on passenger and truck tires for buses and trucks originating in China, and decided in 2009 to impose anti-dumping duties of US$1.12 to US$2.59 per kilogram on the Chinese products involved. That is to say, the maximum anti-dumping duty for selling a truck tire in Brazil may be 950 yuan, and this is the charging standard in 2009.
In 2014 and 2020, Brazil launched anti-dumping sunset review investigations on the case twice. In 2015, the anti-dumping measures were extended for the first time, and the taxes remained unchanged; in 2021, the anti-dumping measures were extended for the second time, and the anti-dumping duties became US$1.05 to US$2.59 per kilogram.
Chinese tire companies still need to pay a maximum tax of 950 yuan per truck tire exported to Brazil. Of course, Brazil is not the first country to impose double anti-dumping on Thai tires and Chinese truck tires produced in Thailand. In 2024, the United States and South Africa have taken action.
On October 10, 2024, nearly a year after launching an anti-dumping investigation on truck and bus tires imported from Thailand, the U.S. Department of Commerce announced a final anti-dumping ruling on truck and bus tires imported from Thailand: the dumping rate of Thai producers/exporters was ruled to be 12.33%~48.39%.
On September 20 of the same year, the South African International Trade Administration Commission announced the initiation of an anti-circumvention investigation procedure against China's export of new pneumatic rubber tires suspected of circumventing anti-dumping duties by transferring to Cambodia, Thailand and Vietnam. The road for Chinese tire companies to produce tires in Southeast Asia began to be blocked.
03 How cheap are Southeast Asian tires
However, at present, Chinese tire companies will not lose their jobs in Thailand and Southeast Asia. Why? First, they can make money, and low costs guarantee profit margins of about 20%; second, the current global tire consumption is downgraded, and overseas markets are still the main consumer of Southeast Asian tires. The data on imported tires in the United States in 2024 is released, and Thailand is the first source of major tire market segments in the United States.
The cheapest imported tires from Vietnam are purchased by the United States. In 2024, it only costs 246 yuan to buy a passenger car tire from Vietnam, the average price of a light truck tire is only 355 yuan, and the price of a truck tire is only 868 yuan. In fact, the prices of tires produced in Thailand, Vietnam and Cambodia are not that expensive.
04 The whole story of Egypt's double anti-dumping of tires
On October 10, 2019, Egypt launched an anti-dumping investigation on truck and bus tires originating from China, India, Indonesia and Thailand. On March 3, 2021, Egypt made a ruling to "impose anti-dumping duties".
At that time, the tax rate of Chinese products was 9.8% to 36.9% of the CIF price; the tax rate of Thai products was 7.5%-31.2% of the CIF price. On February 6, 2024, Egypt launched an anti-dumping mid-term review investigation. After the adjustment, the Chinese tax rate is 22% to 56% of the CIF price; the Thai tax rate is 6% to 20% of the CIF price.
