In fact, the US’s position in the international markets has weakened with tyre exports contracting by a fourth (2016 data). So the worrisome question is—will China’s tyre industry get caught in the tariff crossfire between the two nations? Any cutback in US imports due to unviable duty structures is bound to puncture the revenue and profits of Chinese tyre firms. Further, this could offset the adverse impact of rising crude oil prices—another input in tyre production. But one must tread cautiously as there could be some negative implications for the Indian tyre industry if China decides to dump surplus tyre production at throwaway prices to clear stock.

Source: Mint April 10, 2018 03:11 UTC