All news
Federal Register · Tariff·

US extends China tire tariffs after sunset review

The U.S. Department of Commerce has determined that revoking the countervailing duty (CVD) order on passenger vehicle and light truck tires from China would likely lead to continued subsidies. Commerce has extended the existing CVD order, meaning duties on Chinese passenger tires remain in effect. Importers of tires from China will continue to pay countervailing duties calculated on a company-specific basis.

Photo: ainc T / Pexels

US extends China tire tariffs after sunset review

On May 4, 2026, the U.S. Department of Commerce announced the final results of an expedited second sunset review of the countervailing duty (CVD) order on certain passenger vehicle and light truck tires from China. Commerce determined that revocation of the order would be likely to lead to continuation or recurrence of countervailable subsidies.

"The U.S. Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order on certain passenger vehicle and light truck tires (passenger tires) from the People's Republic of China (China) would be likely to lead to continuation or recurrence of countervailable subsidies at the levels indicated in the 'Final Results of Sunset Review' section of this notice." — Federal Register, May 4, 2026

This decision means the CVD order remains active and duties on imported Chinese passenger tires continue indefinitely unless Commerce initiates another review or Congress intervenes. Exporters and importers of passenger vehicle and light truck tires (HS Chapter 40, specifically radial tires classified under HS 4011.20 and similar codes) face ongoing country-of-origin (COO) documentation requirements and company-specific duty rates.

Sunset reviews occur automatically every five years unless industry petitioners request continuation. Commerce's finding indicates that Chinese tire manufacturers' government subsidies remain material and that removing duties would allow those subsidies to resurface. Importers should confirm their supplier's current CVD rate with their freight forwarder or customs broker, as individual company rates are applied based on the original investigation findings.

What this means for shippers

If you import passenger or light truck tires from China, the CVD order is locked in place. Confirm your supplier's company-specific duty rate immediately and factor it into landed-cost estimates — these duties are non-recoverable and apply on top of any other China tariffs (Section 301 or MFN). Update your tariff schedules and notify your customs broker of the final order status. Review your sourcing strategy if tire margins are tight; duty continuation eliminates any near-term relief option.

/landed-cost

Related news