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The implications of US punitive tariffs on Chinese tires for rubber exports from South-East Asia

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  • Bo Xiong

Abstract

In July 2015, the United States finalized the countervailing and anti-dumping tariff rates against tire imports from China. The tariff increases are substantial and irrevocable until 2020. We show that the US tariff hikes adversely affect the world tire trade, resulting in a weaker demand for natural rubber from South-East Asia. Using an economic simulation model, we find that the collateral damage to natural rubber export is about $48 million a year in Indonesia, $42 million a year in Thailand, $18 million a year in Malaysia, and $4 million a year in Vietnam.

Suggested Citation

  • Bo Xiong, 2017. "The implications of US punitive tariffs on Chinese tires for rubber exports from South-East Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 575-586, October.
    • Handle: RePEc:taf:rjapxx:v:22:y:2017:i:4:p:575-586
    DOI: 10.1080/13547860.2017.1312073
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