South Africans buying imported tyres from China will be paying 38.8% more, for the next six months after the International Trade Administration Commission of South Africa (ITAC) ruled on an anti-dumping application by tyre manufacturers.
The new levy is in addition to existing import duties of between 25% and 30%, with tyre importers now saying this will push overall duties on tyres close to the 70% mark.
The SA Tyre Manufacturers Conference, which represents Goodyear, Sumitomo, Bridgestone and Continental, welcomed the ITAC decision after they lodged an anti-dumping application last year.
Spokesperson, Nduduzo Chala, says it's a good result for them, as it was not about increasing tyre prices, but about equalising trade.
He says to them it is a good result as it protects the local industry and production of tyres in the country.
Meanwhile, the SA Tyre Importers Association (SATIA) says there's certainly no love for tyre importers with this decision by the government.
Chairperson, Charl de Villiers, says in terms of the decision taxi operators will pay 23% more for tyres, while truck and logistics providers will pay 22% more and for passenger cars, the outlay will be between 21 and 25% more.
He called on the government to reverse the decision, saying the impact will be devastating.
"We expect prices to increase and we have already seen companies announce price increases from last week Thursday when it was announced, some companies going up by 20%, some even more," he said.
De Villiers says they are very concerned about the impact this will have on inflation.
The tariff duty is only applicable to imported tyres from China and not Korea or Japan.
