Do proposed tariffs on Vietnam-made tires mark a first for US trade policy?
On November 4, the Commerce Department announced plans to impose tariffs on imports of tires from Vietnam, citing the country's “undervalued currency.”
The move was based on a rule issued in February to treat currency devaluation as a form of subsidy, making countries found to be manipulating the value of their currency liable to countervailing duties. It is a matter of debate if these rules violate either U.S. law or World Trade Organization rules.
The measures against Vietnam, which disputes the U.S. finding, may not last. The judgment is preliminary, pending a final ruling in March 2021. The incoming Biden administration could also drop the case or rescind the currency rule. In 2019, imports of the tires affected by the duty totaled $469.6 million, the department said. The tariffs were set at 6.23% to 10.08%.
