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Chinese tires targeted for anti-dumping duties

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From Reuters

The Commerce Department on Wednesday set preliminary anti-dumping duties of as much as 210% on millions of off-road tires from China that it said were being sold in the United States at unfairly low prices.

The tires were the sixth Chinese product to be hit with U.S. anti-dumping duties since the start of the year.

The others include nails, certain steel pipe, a teeth-whitening ingredient and laminated woven sacks used to package items such as dog food and bird seed. This diverse list reflects the array of U.S. manufacturers feeling pressure from Chinese exports that many complain are unfairly priced.

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“Price distortion by Chinese exporters puts American manufacturers at an unfair disadvantage,” David Spooner, assistant secretary of Commerce for Import Administration, said in a statement announcing the action.

U.S. imports of the tires targeted in the case rose from 11.2 million in 2004 to nearly 15 million in 2006. The duties do not affect tires used on aircraft, all-terrain vehicles, trailers, golf carts, and lawn and garden equipment.

The U.S. International Trade Commission must make a final determination that U.S. producers have been materially harmed, or are threatened with material harm, for final duties to go into effect. That decision is expected in August.

Altogether, the United States has more than 60 anti-dumping orders in force against China. Many date back years.

Titan Tire Corp. -- an Iowa-based company that makes off-road tires for agricultural, construction and industrial vehicles for customers including John Deere -- and union workers filed two cases last year asking for import relief.

The Commerce Department responded in December to Titan’s complaint that the Chinese government subsidizes off-road tire production by setting preliminary countervailing duties ranging from 2.38% to 6.59%.

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The separate duties announced Wednesday are intended to stop Chinese companies from “dumping” off-road tires in the U.S. market at below fair market prices.

An unspecified number of companies now face a China-wide rate of 210.48%.

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