U.S. Department of Commerce Maintains Countervailing Duty Order on Chinese Tires
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The U.S. Department of Commerce, specifically its International Trade Administration, has recently announced the results of its review concerning certain passenger vehicle and light truck tires from China.
In the summary published on May 4, 2026, the Department of Commerce confirmed that if the countervailing duty (CVD) order on these tires is revoked, it would likely result in the continuation or recurrence of countervailable subsidies from China.
The countervailing duty order was first established on August 10, 2015. The idea behind the CVD order is to offset subsidies provided by foreign governments, which can make products from those countries cheaper and harm domestic industries in the United States.
This order is specifically against tires from the People’s Republic of China. The review process started on January 2, 2026, as part of the second sunset review. Sunset reviews happen every five years to determine if the duties should continue.
On January 14, 2026, United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial Workers Union, AFL-CIO, CLC, a domestic interested party, filed a notice to participate in this review. This group claims to represent industries involved in the production of similar products in the United States.
The department received adequate information from the domestic interested party. However, there was no substantial response from the Government of China or any related parties. This led the Department of Commerce to undertake an expedited review process for 120 days.
The review’s findings showed that if the order is lifted, countervailable subsidies likely to continue would have significant rates. For GITI Tire (Fujian) Co., Ltd., the rate is 38.15%. For Cooper Kunshan Tire Co., Ltd., it’s 21.68%. Shandong Yongsheng Rubber Group Co., Ltd. faces even a higher rate of 116.73%. Other producers and exporters would have an all-encompassing rate of 31.56%.
These findings underline the necessity to keep the duty in place, ensuring no unfair advantage to foreign producers that might harm the U.S. tire industry.
This announcement also serves as a reminder regarding the return or destruction of any proprietary information shared under Administrative Protective Orders. Failure to comply with these regulations could lead to penalties.
The decision is documented in the Federal Register and was signed by Scot Fullerton, Acting Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, on April 29, 2026.
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