By Alex Kapadia
Many Chinese tyres manufacturers are focusing their marketing attention away from the US after sales plummeted due to newly imposed tariffs on their exported tyres.
Small and medium sized tyres makers have been hit by the crash in demand from the US since the increased duties were introduced in September and they need to tap into new markets to survive.
Jiang Wenchang, sales manager of Beijing-based China National Tyre and Rubber Corp, told China Daily: “From September, our tyre exports to the US shrank nearly 40 percent due to the punitive tariffs.”
Speaking at the third Asian Essen Tyre Show in Shanghai, he added: “We are altering our marketing priority to European countries now, as they have a similar product standard as that of the US.”
Jiang said he expects his company to make $10 million from tyre exports to the European markets by the end of this year.
The US imposed a 35-percent special tariff on tyre imports from China, after a high-profile trade union said they were damaging the domestic industry.
Qingdao Fulin Tyres revealed its exports to the US were frozen in September, compared with exports of $27 million from January to August.
While the Guangzhou Xindi Tyre Co admitted its US business has come to a halt and it is now shifting business to central and southern American markets.