China retaliates to US trade war with 10% tariff on synthetic rubber and tires
Synthetic rubber and tires are now part of the US-China trade war, with China announcing it will enforce a 10% tariff on various synthetic rubber and tire products originating in the US or Canada by September 24.
The decision from China’s Ministry of Commerce is the result of a third round of tariffs imposed by the US on Chinese products. The Trump administration’s latest round of taxes call for a 10% tariff on thousands of products. The rate is due to increase to 25% by January 1. The US list of tariffs on Chinese products includes butadiene, the feedstock for synthetic butadiene rubber, news source Platts reports.
About 70% of synthetic rubber is used in tires. China is one of the larger trade partners of the US for the tire industry and the tariffs are expected to negatively impact the country’s tire and SBR industries. According to figures from the US Department of Commerce, China was the largest trading partner of the US for tires in 2017, with the value of its tire exports at $1.95 billion for the year. It was the top source of truck or bus tires for the US in 2017, exporting 6.5 million tires, making up 44% of such imports.
The US government released a list of goods this week that the estimated $200 billion in tariffs will cover. The list includes more than 5,700 products imported from China.
Source: The Smithers Report