Tire firms affected by US tariffs

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The first phase of this year's Canton Fair is drawing to a close. Although there is a clear increase in the number of buyers at the fair, Chinese tire manufacturers have seen their business hit by the protectionist duties levied by the US.

By 6pm on Saturday, more than 76 thousand overseas buyers had visited the fair, nearly 14 per cent more than a year ago. Transaction volume had reached nearly 3.3 billion US dollars by Friday, up a fifth on the same period last year.

In contrast to the busy traders, vehicle accessory booths are taking a beating from the US duties. Most visitors to the tire exhibition areas are from South America, Africa and the Middle East.

One tire merchant said "There are many fewer visitors this year. Especially from the US, almost zero."

This tire merchant says their exports of passenger car tires and light truck tires have been halved since September, hit by the US decision to impose 3-year tariffs on Chinese tires. They have to explore new markets to offset the loss of orders.

One tire merchant said "Markets such as Europe, and South America. We also do well in African market."

Chinese tire makers' total losses are estimated at 2.2-billion US dollars as a result of the tariffs, which range from 25 to 35 percent over the next three years.