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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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    References listed on IDEAS

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    1. Chung, Sunghoon & Lee, Joonhyung & Osang, Thomas, 2016. "Did China tire safeguard save U.S. workers?," European Economic Review, Elsevier, vol. 85(C), pages 22-38.
    2. Michinaka, Tetsuya & Tachibana, Satoshi & Turner, James A., 2011. "Estimating price and income elasticities of demand for forest products: Cluster analysis used as a tool in grouping," Forest Policy and Economics, Elsevier, vol. 13(6), pages 435-445, July.
    3. Gary Clyde Hufbauer & Sean Lowry, 2012. "US Tire Tariffs: Saving Few Jobs at High Cost," Policy Briefs PB12-9, Peterson Institute for International Economics.
    4. Prusa, Thomas J. & Vermulst, Edwin, 2013. "United States – Definitive Anti-Dumping and Countervailing Duties on Certain Products from China: Passing the Buck on Pass-Through," World Trade Review, Cambridge University Press, vol. 12(02), pages 197-234, April.
    5. Austan D. Goolsbee & Alan B. Krueger, 2015. "A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler," Journal of Economic Perspectives, American Economic Association, vol. 29(2), pages 3-24, Spring.
    6. repec:bla:agecon:v:48:y:2017:i:4:p:413-424 is not listed on IDEAS
    7. Bradley J. Rickard & Daniel A. Sumner, 2008. "Domestic Support and Border Measures for Processed Horticultural Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(1), pages 55-68.
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