As of Tuesday, the Mexican government imposed anti-dumping duties on imports of tires from China.

To be precise: these are new pneumatic tires of radial construction for automobiles and light trucks, with a nominal inner diameter of 13 to 22 inches (330.2 mm to 558.8 mm, respectively).

The case commenced on November 30, 2022 with the application for the quotas by the following companies:

• Bridgestone de México.
• Compañía Hulera Tornel. 
• Continental Tire de México,
• Michelin Industries, 
• The National Chamber of the Rubber Industry (CNIH).

Tire imports from China

The results of the investigation carried out by the International Trade Practices Unit (UPCI) of the Ministry of Economy show a worrisome situation. 

Domestic production is in a vulnerable condition. This is because it had to maintain its selling price in the domestic market. This adjustment was necessary to face unfair competition from the imports analyzed. 

As a result, a negative performance was observed in market share, as well as in production and sales directed to the domestic market during the study period. 

In addition, financial indicators related to profitability in the domestic market also showed negative results in the analyzed periods.

On the other hand, exports of new pneumatic tires of radial construction from China face trade remedy measures in the Brazilian and U.S. markets. 

The investigated country has considerable production capacity and significant export potential compared to the size of the domestic market. 

This suggests that, without remedial measures, imports from China could continue to enter the domestic market in large volumes and at competitive prices. 

Thus, projections on economic and financial indicators indicate that operating profits and operating margin could decline significantly in the near future.

Companies

Consequently, the Mexican Ministry of Economy imposed these definitive anti-dumping duties:

• 19.37% on imports from Shandong Linglong.
• 7.16% on imports from Shandong Changfeng Tyres.
• 32.24% to imports from Wanli Tire.
• 5.18% to the imports from Zodo Tire.
• 11.55% to the imports coming from Shandong Haohua Tire.
• 14.82% to imports from: Zhongyi Rubber, Shandong Fengyuan Tire Manufacturing, Shouguang Firemax Tyre, Qingdao Nexen Tire, Prinx Chengshan (Shandong) Tire, Giti Tire (Fujian), Yuanxin Tyre, Shandong New Continent, Shandong Yongfeng Tyres, Giti Radial Tire (Anhui), Shaanxi Yanchang Petroleum Group, Shandong Yongsheng Rubber Group, Kenda Rubber (China), Shandong Wanda Boto, Tercelo Tire, Sichuan Tyre & Rubber, Anhui Jichi Tire, Shandong Changlu Hong Tire, Triangle Tyre, Jiangsu Hankook Tire, Shandong Province Sanli Tire Manufacture, Qingzhou Rydanz Rubber, Qingdao Doublestar Tire Industrial, Kenda Rubber (Tianjin), Shan Dong Lu Tai Rubber and Hankook Tire China.
• 32.24% to imports from Zhaoqing Junhong, Chongqing Hankook Tire and the other producer-exporters that did not appear in this proceeding.