Giti Tire (USA) Inc. raised prices by 9.5% on all passenger and light truck tires (excluding ST tires) the company produces in China and sells in the U.S., effective Jan. 1, 2015.
The price increase is the result of the 11.74% adjusted countervailing duties imposed by the U.S. Department of Commerce on Giti Tire Fujian Co. Ltd. Giti was initially handed a 17.69% duty but appealed the accuracy of the calculations. The DOC reviewed its claims and announced in December that ministerial errors were made.
According to the tiremaker, the company held off on price increases from its distribution centers during the DOC appeal because its stock inventory was not subject to CVD action. That inventory is now depleted and the company must account for the impact of the duties on tires that cleared U.S. Customs effective Dec. 1, 2014.
The next DOC action is scheduled for Jan. 20, 2015, when it will decide if anti-dumping duties will be assessed against tires manufactured in China.
“Giti Tire is committed to the U.S. market, and we look forward to working closely with our dealers to provide American consumers great quality tires at affordable prices,” said Armand Allaire, executive vice president of sales and marketing for Giti Tire (USA) Inc.