TRA recommends changes to tariffs on road wheels from China
In its initial conclusions, the Trade Remedies Authority (TRA) proposes retaining tariffs on imports of forged aluminium road wheels from China.
The TRA also recommends that tariffs on imports of wheels made through casting should be dropped. You can read the TRA’s report, its Statement of Essential Facts, on the TRA public file.
This product covers all aluminium road wheels, from those for lorries to wheels for prestige brands. The products are manufactured by either forging or casting. Forged wheels are more expensive than cast wheels but provide a better strength to weight ratio and as a result are more commonly used in high performance and off-road vehicles. The main UK manufacturer of forged wheels, Rimstock, is based in West Bromwich.
This measure was transitioned into the UK system following the UK’s exit from the EU and the TRA is reviewing it to establish whether existing measures in the form of tariffs at the border are still needed to protect the UK road wheel market from unfairly priced imports. The wheels are sold in the UK to both vehicle manufacturers and aftermarket retailers.
In its analysis, the TRA determined that while the imports of cast aluminium wheels are not damaging, imports of forged aluminium wheels could cause damage to the UK’s wheel manufacturing industry. The TRA therefore proposes to split the measure into two categories and keep the tariffs on forged wheels for five years but not on cast wheels.
TRA Chief Executive Oliver Griffiths said: “This approach will protect the UK’s specialist wheel manufacturers, while removing a 22% tariff on cast wheels from China – a saving which we anticipate being passed on to the downstream automotive industry.”
Interested parties to the case can comment on these conclusions before Tuesday 28 February by visiting the TRA’s public file.The TRA will then consider any comments and additional evidence before it submits its final recommendation to the Secretary of State for Business and Trade, who will decide whether to accept the TRA’s recommendations.
Background:
- The investigation covers the period from 1 July 2020 to 30 June 2021. To assess potential injury to the UK industry, the TRA looked at the period from 1 July 2017 to 30 June 2021.
- Further information on our current transition reviews, including the notice of initiation for aluminium road wheels, can be found on our public file.