Rubber: trade friction re-escalation of rubber industry may be affected

                                      In a July 10 statement, Washington time, the trump administration released a plan to increase tariffs on $200 billion of Chinese goods, including clothing, television parts and refrigerators, with an additional tariff of about 10 percent. Trade frictions between China and the United States have escalated again.

                                      Trump the government lists a 10% tariff on China's $200 billion goods list, including 4001 under all natural rubber, 4002 under all synthetic rubber, all 4011 under a rubber tyre, under a 4013 all rubber inner tube, under a 4015 all vulcanized rubber clothing (except surgical gloves), as well as all the rubber products under 4016 and 4017. The tariffs will not take effect immediately, but will go through a two-month review process and a hearing is scheduled for August 20 solstice on August 23.

                                      Tire export is one of the main profit means of Chinese tire enterprises. China exports 40 per cent of its tyre production, with the us accounting for nearly 30 per cent. But at the same time, the United States is also China's export tires to launch one of the most "double-reverse" investigation. The frequent trade friction between China and the United States in tire products has also made it difficult for some domestic tire enterprises that rely on export. Zhongyu analysis, once the high tax rate began to be implemented, China will have a large number of tires unable to enter the U.S. market, will affect domestic workers employment and other issues. On the other hand, the rubber, carbon black, tar and other products of the upstream industry chain of tires will have different levels of product overstocking and sales difficulties. At the same time, it may further integrate domestic tire enterprises, and some small and medium-sized enterprises that rely on tire export may be eliminated.


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