The United States senate has passed President Trump’s tax reform plan, under which the U.S. corporate tax is likely to drop to 22 percent from 35 percent.
Triangle Tire, a major Chinese tire manufacturer that announced in early November to build a production base in the U.S., did not expect such a happy surprise.
The U.S. owns a car parc of more than 200 million vehicles, including 100 million passenger vehicles, more than any other country.
In 2016, there were 290 million pieces of tires sold in the U.S., 40 percent of which were produced by the local manufacturers in the U.S. and 60 percent of which were imported.
It is expected the domestic tire supply of the U.S. will keep increasing in the coming years.
Thus, the move of Triangle setting up factory in the U.S. will help the company benefit from the preferential tax policies of the U.S., and it will indirectly help Triangle to enhance the competitiveness of its tires in the U.S. and the international markets.
From a long term perspective, Triangle will build a new brand image to fast enter the western markets via the factory in the U.S.
If the U.S. puts in large sums of investments in manufacturing and infrastructure construction as President Trump promised, there will be an increase in the use of heavy trucks.
Besides, the economic recovery and e-commerce development have stimulated the freight transport in the north America.
As such, it is expected the demand for heavy trucks will keep increasing in the U.S., and it follows market demand for Triangle to set up a tire project for commercial vehicles in the U.S.
