Brazil's double anti-dumping investigation on automobile tires

Recently, the China Trade Relief Information Network reported that Brazil has launched a second anti-dumping sunset review investigation on automobile tires from Taiwan, China.

On January 16, 2025, the Foreign Trade Secretariat of the Ministry of Development, Industry, Trade and Services of Brazil issued Announcement No. 3 of 2025, in response to the application submitted by the Brazilian Tire Industry Association on September 13, 2024, to launch a second anti-dumping sunset review investigation on automobile tires originating from Thailand and Taiwan, China.

The products involved include 65 and 70 series automobile tires with rim sizes of 13 inches and 14 inches and tire widths of 165 mm, 175 mm and 185 mm.

The Mercosur tariff number of the products involved is 4011.10.00. The dumping investigation period of this case is from July 2023 to June 2024, and the damage investigation period is from July 2019 to June 2024. The announcement will take effect from the date of publication.

Many Chinese tires are exported overseas due to their price advantage, bringing low-priced products to people all over the world. However, they have also been jointly boycotted by many countries.

Many countries boycott Chinese tires
EU: It will take effect immediately after the European Commission's implementing regulations are issued on January 15, 2025. The new tariff stipulates that each tire will be charged between 21.12 euros (159 yuan) and a maximum of 78.90 euros (595 yuan).

UK: The double anti-dumping amount of commercial vehicle tires of some Chinese tire companies may exceed 1,000 yuan per tire.

Brazil: The import tax on passenger car tires will be increased from 16% to 25%.

South Africa: Tariffs will be imposed on passenger car tires and truck and bus tires for motor vehicles imported from China, and tariffs of up to 68%, 84% and 21% will be imposed on the investigated products from Thailand, Vietnam and Cambodia respectively.

India: It has decided to continue to impose anti-subsidy duties on China's products involved for a period of 5 years, with a tax rate of CIF17.57%.

Many countries and regions around the world, like a group of sharks smelling blood, have launched anti-dumping investigations on various Chinese tires. The global trade war is like a raging fire, and it continues to escalate. Chinese tires are facing the most comprehensive siege in history. It's like a cruel wheel war, and Chinese tire companies are surrounded by enemies.

The trade war can't stop Chinese tires
However, the Chinese tire industry is not powerless. Chinese tires are developing rapidly, which is one of the reasons for the boycott by many countries. Chinese tires are like a thriving teenager who is envied for his outstanding performance. The fact that multiple overseas markets bully Chinese tires again and again is due to the fear of the growth of Chinese tire brands and product market share.

Chinese tires' high-cost-effective tires are extremely popular in overseas markets. At the same time, with the continuous improvement of the gold content of domestic tires, domestic brands have begun to emerge in overseas high-end markets. From products to brands to services, every step is closely catching up with tire giants. Although it is empty talk to say that there is no gap with international big brands, more and more consumers recognize and are willing to support Chinese tires, which is the best proof that Chinese tires have gotten rid of scattered, chaotic and poor. The more popular Chinese tires are, the more urgent it is for Chinese tires to go overseas.

Chinese tires going overseas 3.0
China's tire production capacity is far from enough, especially with the further escalation of the double anti-dumping, China's tire supply capacity still has room for development. More tire supply locations, combined with stronger supply capacity, can Chinese tires truly compete with foreign companies in the global market. But a new problem has arisen. All these capacity expansions need to be based on sufficient funds.

This also means that the stability of the capital chain is extremely important for the overseas layout of tire companies-whether the full production of overseas factories can really help companies improve their debt repayment ability cannot be easily judged at present. But there is no doubt that there is still more room for Chinese tires to go overseas.