The ITC Considers New Tariffs on Brake Drums from China and Turkey

Webb Wheel’s Complaint Leads to Investigation

On June 20, 2024, Webb Wheel Products, Inc. asked the U.S. government to look into brake drums from China and Turkey. Webb Wheel thinks these countries are selling brake drums at very low prices. They want the U.S. to add extra charges on these products to protect U.S. businesses.

ITC Considers New Tariffs – What ITC is Investigating

The investigation looks at specific brake drums made of gray cast iron. These brake drums have an inside diameter between 14.75 inches and 16.6 inches and weigh more than 50 pounds. The investigation includes both finished and unfinished brake drums, whether they are imported alone or with other parts. Even if these brake drums are worked on in other countries or in the U.S., they are still part of the investigation.

Unfinished brake drums that have been partly worked on but are not ready to use are included too. Brake drums combined with other parts are also included unless they contain more than 40% steel by weight. Brake drums that are already covered by other U.S. orders are not part of this investigation.

Possible Effects and Industry Worries

Last week, the International Trade Commission (ITC) began looking into Webb Wheel’s complaint. If they find the complaint valid, extra charges could be added to these brake drums by late summer 2024. Webb Wheel says that brake drums from Turkey and China are sold too cheaply in the U.S., hurting local manufacturers.

The U.S. market for trailer brake drums is worth about $180 million each year. The National Trailer Dealers Association (NTDA) and MacKay & Co. say that a big tariff, like 300%, would make these imported brake drums much more expensive. This would change how dealers price these parts and could make trailers cost more.

Concerns About Costs and Supply Chain Issues

The NTDA is worried that higher costs could disrupt the supply chain. They think that tariffs could make it harder for U.S. businesses that depend on imported brake drums to compete. The association is asking its members to tell the ITC, the Department of Commerce, or lawmakers about their concerns.

As the investigation continues, people in the trucking industry are paying close attention. They want to know how these changes might affect their business and costs.