Lawmakers from Texas and Oklahoma called on Thursday for a government report on the economy-wide effects of the 35% tariff that President Barack Obama imposed on tire imports from China.
"I am concerned that the administration's tire tax will cost us jobs in the United States and raise prices for tires for hardworking Americans," Representative Kevin Brady, a Texas Republican, said in a statement.
"I want to make sure that the administration has all the facts so that it can best determine how and when to end that tax."
In September 2009, the Obama Administration ordered a three-year tiered added tariff on imported
China-made consumer tires – 35% for the first year, 30% for the second and 25% for the third – supporting a complaint filed by the United Steelworkers, who said their jobs were threatened by imports from China.
Brady said the administration should consider ending the tax earlier if it is hurting American consumers and not delivering promised new jobs.
He and Representative Dan Boren, an Oklahoma Democrat, urged U.S. Trade Representative Ron Kirk to establish a comprehensive monitoring system to assess the impact of the import tax on U.S. employment, tire prices and auto safety.
They said they had seen reports of significant tire price increases in many areas of the country, including poorer neighborhoods, and anecdotal evidence of layoffs in tire distribution and retail sectors.