Bridgestone’s Thai tire tariff tiff rolls on with retroactive penalties
The U.S. Department of Commerce (DOC) already hit Bridgestone with a tariff rate four times higher (48.39%) than other companies (12.33%) importing truck and bus tires from Thailand and is now tacking on a 2.35% retroactive tariff for Bridgestone commercial tires shipped to the U.S. from February 20 to May 19, 2024.
Previously the DOC said it would not impose what essentially amounts to import back taxes. That was in May, prior to the investigation stemming from a 2023 United Steelworkers petition alleging Thai tires were flooding the U.S. market and impacting domestic products’ ability to compete.
Thailand exported 6.6 million medium truck tires to the U.S. in 2023, one-third less than in 2022, but still more than the next three top exporters—Japan, Vietnam, and Canada—combined, according to Modern Tire Dealer data.
The investigation was conducted in June and July of this year. The DOC ultimately determined Bridgestone truck and bus tires were being sold at less than fair value and that “there was a massive increase in the volume of imports of the subject merchandise from Bridgestone during the critical circumstances period.”
According to the ruling posted on the Federal Register, lack of data was a primary determining factor for the decision, which stated the DOC “was unable to verify the accuracy of Bridgestone's reporting with respect to its sales data. As a consequence, we find that Bridgestone's reported sales data are unverified and, thus, cannot serve as a reliable basis for calculating an accurate margin for Bridgestone in this investigation.”
Read more: Proposed bill to give fleets tax credits for retreading
The DOC also alleged that “Bridgestone failed to cooperate by not acting to the best of its ability to comply with our requests for information.”
Another company subject to the investigation, Prinx Chengshan Tire, was not assessed for retroactive tariffs.
In a recent filing, Bridgestone pushed back: “As a preliminary matter, Bridgestone iterates that it has fully cooperated in this investigation. It has provided complete and accurate information during the questionnaire phase and on-site verifications. Bridgestone has invested significant resources to thoroughly prepare for the verifications and supplied all supporting documentation in the format and manner requested. At the conclusion of the verifications, there was no indication that any requested information was missing. Nonetheless, the (DOC) decided to apply adverse facts available based on certain findings that indicate significant oversight of material facts in the record.”
Bridgestone said errors the DOC encountered were within standard accounting errors, and that the DOC should correct and amend its final tariff ruling.
Retread tires are not subject to the tariffs, and fleets may want to consider leveraging Bridgestone’s retread brand, Bandag, to keep tire costs down. In general, tires are one of the top costs for fleets, and since the COVID pandemic and subsequent inflation, tire costs have ballooned across the board.
"With many retreads selling for 30 to 50% less than comparable new tires, while performing equal to or better than some quality new tires, retreads provide commercial truck fleets the ability to reduce costs without compromising on performance," Brian Cunningham, VP of fleet solutions at Bridgestone Americas, previously told Fleet Maintenance.
