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Tire dealers, importers argue against a tariff
By Holly Rosenkrantz
and Mark Drajem
Bloomberg News
Published on Tuesday, Jun 30, 2009
A U.S. agency has proposed that President Barack Obama impose duties that might limit the import of $1.7 billion worth of auto tires from China, acting on a complaint brought by the United Steelworkers.
In a 4-2 vote, the U.S. International Trade Commission recommended that Obama impose an additional tariff on imports of certain passenger vehicle and light truck tires from China for three years.
The duty would be 55 percent ''ad valorem'' in the first year, 45 percent in the second year and 35 percent in the third.
''We have determined that . . . certain passenger vehicle and light truck tires from China are being imported into the United States in such increased quantities that they are causing market disruption to the domestic industry producing such tires,'' four commissioners said in a statement.
Obama has until mid-September to decide whether to act on the recommendations.
The case is the first test for Obama on trade with China, after he vowed during his presidential campaign last year to help unions or domestic industries seeking relief from foreign competition. Since the election, he also has pledged to avoid protectionism so as not to exacerbate the global recession.
The United Steelworkers want Obama to cut imports of automobile tires from China by more than half to 21 million, the level in 2005.
China sent 46 million tires to the U.S. in 2008.
U.S. tire dealers and importers argue that domestic tire makers such as Akron-based Goodyear and Findlay-based Cooper Tire & Rubber Co. have no interest in the low-cost tire market that China serves.
The U.S. companies make branded tires, which are often sold to vehicle manufacturers. The Chinese imports are typically not branded and sold to consumers through low-cost outlets such as Wal-Mart Stores Inc., according to GITI Tire Pte Ltd., China's largest tire producer.
''The proposed remedy, if enacted, will not help U.S. workers,'' said Vic DeIorio, executive vice president for GITI in the United States. ''Chinese-made tires have filled a market void created when U.S. manufacturers abandoned the economy segment of the mass market.''
President George W. Bush turned down each of the four recommendations for limits on imports he was given by the ITC.
A U.S. agency has proposed that President Barack Obama impose duties that might limit the import of $1.7 billion worth of auto tires from China, acting on a complaint brought by the United Steelworkers.
Get the full article here.
Comments
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Make the world a better place... punch a Steeler fan in the face, .
Posted 12:47 PM, 06/30/2009
I'm all for free trade, but I will never put a Chinese tire on my car. I trust Chinese quality only up until the point that I rely on the product not to kill me.
