Government called to speed up higher import tariffs on Chinese tyres

Local tyre manufacturers want government to speed up the introduction of higher import tariffs on cheap Chinese tyres. This amid growing concerns that the move could push up the cost of tyres in the country.

The Department of Trade, Industry and Competition is proposing a 38.8% anti-dumping protection levy on the importation of tyres into South Africa.

The department published this provisional payment in relation to anti-dumping duty this month.

The cost of keeping a vehicle on the road could get even more higher. This along with other costs of living that continue to spiral out of control. Rising food and energy prices and are some of the current pressures behind the latest 7.8% inflation rate.

Now motorists could face more price hikes for their set of new tyres. This as the DTIC is looking into a 38,8%  import price increase on tyres. The increase excludes the normal annual price hike of 5.9% introduced in July.

When adding the anti-dumping levy, tyre prices will increase by a massive 44.7%. The Road Freight Association, CEO, Gavin Kelly says this hike is untenable for any transport operation.

“The immediate effect is that you and I will have to dig deeper into our pockets to pay for transport, it’s going to be everybody who travels to work because they own their cars or travel by bus and taxis, now these vehicles use tyres and will have very, very similar circumstances where their running costs are going to increase.”

This hike will also be felt across the board as it will be passed on consumers. The association says the increase will have an impact on operational costs of transport, which will see the price of transportation of goods go up by at least 8%.

“There are a lot of companies who are facing crucial bits for their own industries to be delivered to survive now on top of this, you put this sort of increase on tyres and it won’t be the full 38% that we will feel as consumers. It’s definitely gonna be felt by those who bring it onto their businesses and that’s something right now that a lot of businesses cannot afford,” adds Kelly.

Motorists have expressed their feelings about this possible hike.

“This 38% is just too much because things have been going up like petrol and tyres too. I think government should not consider this increase or government should at least absorb the increase.”

“Right now in South Africa we have an unemployment problem and because of COVID things have gone up, petrol has gone up and food prices too. So this increase will definitely hurt us because the situation we are in is already tough.”

“It is not a good idea that government implements this increase because my salary is already not enough, what are my kids going to eat. Government must look out for us.”

The Association appeals to the DTIC to reconsider this decision and proposes that, once there is sufficient sustainable capacity in the country, that the possible introduction of an anti-dumping levy is then considered to protect the local tyre manufacturing industry that actually produces enough tyres to meet local demands.