More price hikes loom as tyre producers ask for higher duties on Chinese imports

Date:

More price hikes loom as tyre producers ask for higher duties on Chinese imports

Bruce Whitfield interviews Donald MacKay, Director at XA International Trade Advisors.

@ pramotephotostock/123rf.com
  • The Money Show
  • Bruce Whitfield
  • Tyres
  • Transport costs
  • Donald Mackay
  • Continental
  • Chinese imports
  • Bridgestone
  • TIASA
  • SATMC
  • Tyre Importers Association of SA
  • South African Tyre Manufacturers Conference
  • Goodyear

The cost of imported tyres could jump by 41% if a grouping of domestic manufacturers has its way, was the warning on Tuesday from the Tyre Importers Association of South Africa (Tiasa).

The South African Tyre Manufacturers Conference (SATMC) wants government to impose anti-dumping duties on Chinese tyre imports.

Its members are Continental, Bridgestone, Goodyear, and Sumitomo.

@ pramotephotostock/123rf.com

Tiasa is opposing the application to the International Trade Administration Commission (Itac).

(For more detail read the article “SA may hit Chinese tyres with heavy import duties – that will drive up fares, warns taxi industry”.)

The application is still being investigated for consideration emphasizes Donald MacKay, Director at XA International Trade Advisors.

Tiaso is a client of the company.

MacKay explains the SATMC’s reasoning for higher tariffs on imported tyres.

The motivation follows the theme that most anti-dumping applications do – they’re struggling with competition from China, they’re suffering injury from all of these imports and the world looks fairly grim for them, they say, if the Chinese imports continue

Donald MacKay, Director – XA International Trade Advisors

He says there isn’t enough information from the applicants yet to say definitively whether the prices of imports dramatically undercut those of local tyre producers.

Any other region in the world can supply tyres without being affected. Having said that though, China is the dominant supplier and there is a fairly large price difference between China and the second biggest supplier which is Japan.

Donald MacKay, Director – XA International Trade Advisors

Our government doesn’t appear to be too shy of levying large imports on most things at the moment, so it’s certainly a possibility.

Donald MacKay, Director – XA International Trade Advisors

RELATED: Taxi bosses threaten to shut down the country over fuel price hikes

MacKay says what they are most worried about is the impact on South Africa’s transport sector.

That has a knock-on effect into absolutely everything else.”

For more detail, listen to the interview below:

This article first appeared on CapeTalk : More price hikes loom as tyre producers ask for higher duties on Chinese imports

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

US inflation eases ‘but you’re still looking at successive rate hikes’

US inflation eases 'but you're still looking at successive rate hikes' Paula Luckhoff | The Money Show's Bruce Whitfield interviews Kevin Lings, Chief Economist at Stanlib Asset Management. Rand The Money Show Bruce Whitfield Dollar Interest rates Inflation Exchange rate Kevin Lings Us fed Energy prices US inflation Email Print Tweet Share - US inflation eased slightly

For many women in SA, keeping a job more important than asking for higher pay

For many women in SA, keeping a job more important than asking for higher pay Paula Luckhoff |  Motheo Khoaripe talks to unlearning expert Zanele Njapha (TomorrowToday) about the gender pay gap in South Africa. The Money Show Bruce Whitfield Gender pay gap Equal pay TomorrowToday Zanele Njapha Banyana Banayana Motheo Khoaripe Income disparity Pay disparity

With another fuel price hike expected, DA proposes changes to regulations

With another fuel price hike expected, DA proposes changes to regulations There's speculation that we could be paying close to R25 for a litre of 93 octane from Wednesday. © bizoon/123rf.com Fuel price increases Democratic Alliance DA Email Print Tweet Share Buhle Mbhele | 38 days ago JOHANNESBURG - Political parties and civil society continue to challenge

Govt urged to cut red tape and implement plans to see an end to power cuts

Govt urged to cut red tape and implement plans to see an end to power cuts The latest round of blackouts followed a wildcat strike but experts say that the system used to power the country was under strain anyway. Picture: 123rf.com Eskom Load shedding Renewable energy Email Print Tweet Share Ray White | 38 days ago