Horizon Tire Response to USW Tariff Proposal

Horizon’s Guerrieri: New Tariff Bad for Consumers, Bad Business

Horizon-Tire-logoResponses from the industry to the United Steelworkers latest action to gain another additional tariff on consumer tires imported from China are beginning to surface.

On June 2, the USW filed a petition requesting antidumping and countervailing duty relief under Sections 701 and 731 of the Trade Act of 1930, claiming dumping margins as high as 92%.

“Imports have more than doubled to 50.8 million tires last year, and in the first quarter of 2014 alone, imported tires from China surged an additional 24.6% This is a valuable market that China wants to exploit, and action to address this problem is vital,” the USW said.

The USW also claims that this will keep American jobs safe.

A preliminary ruling from the ITC is due July 18.

J. Dale Guerrieri, director of marketing at Houston-based importer Horizon Tire, issued a statement yesterday, claiming the latest Steelworker maneuver “is purely politically driven.”

“I believe that it’s bad for the consumer – a de-facto tax on them via funding the tariffs coming to our government. It will again prove to not help protect U.S. jobs.

“Other countries with factories, such as Thailand, Indonesia, Mexico, Brazil, Taiwan, South Korea, etc., will pick up the slack thus raising the average selling price to the consumer via the resulting impact. Once the post-tariff pricing is raised, most of the non-Chinese product pricing will be raised to be positioned above the Chinese pricing, which will result in the Chinese product’s pricing being slotted in pre-tariff price positioning. In addition, if the Chinese government retaliates via products our corporations are putting into China, our economy will be hurt further.

“Will it affect our business? Yes, to some degree. It is a fact that we have Chinese-based sourcing via factories owned by them which are located in the Pacific Rim outside of China. We are not locked into the status quo unlike some other Chinese product sources. In addition, it will affect non-Chinese based companies with factories and/or factory production based in China – Goodyear, Cooper, etc. – in that they will have to shift production around.

“In addition, where are the United Steelworkers on medium truck tires and steel wheels out of China? The numbers on those categories coming into the U.S. from China are high, as well! Why (is there) no requested tariff on that product? Could it be that certain parties don’t want to rock the boat of the major U.S. trucking companies, independent owners-operators and fellow brothers Teamsters Union – the trucking industry as a whole? Why not protect Goodyear and Cooper on the truck tire side? Why only passenger and LT (tires)?

“In other words, it’s OK to hit the common citizen on this, but trucking companies, owner-operators, Teamsters, the trucking industry … too much potential backlash there! (They) can’t upset the American trucking industry and Teamster members by causing them higher costs!…Something is really wrong with this picture.”

At press time today, no comments have been released by as TIA and the RMA, or by tire manufacturers, private brand marketers or tire importers regarding the USW petition.

You May Also Like

GRI appoints new director of North America

Ydo Doornbos has spent 29 years in the tire industry, and will now lead GRI’s efforts to expand the company in the North American market.


GRI has appointed Ydo Doornbos as director of North America. With a career spanning 29 years in the tire industry in various management roles, Doornbos began in 1995 with a six-month internship at Monarch Industrial Tires in the USA. He moved on to Trelleborg Wheel Systems (TWS) as the regional sales & operations manager in Europe for the Monarch brand and was then promoted to marketing manager Europe for the TWS Industrial Tires division.

Autel Energy Showcases EV Charging Solutions, Electrified Bronco at CES

At CES, Autel Energy showcased its suite of EV charging solutions and an electrified 1969 Ford Bronco.

2019 Newsmakers: Bridgestone Americas

Nearly all products in the Firestone family of tires have been upgraded over the past three years, and Bridgestone is on track to have all of its consumer tire portfolio across both the Bridgestone and Firestone brands either upgraded or replaced by the end of 2020.

2019 Newsmakers: Nokian Tyres

Nokian Tyres opened its first U.S. manufacturing facility and launched numerous new products. See what’s in store for 2020.

2019 Newsmakers: Nexen Tire America

Nexen Tire opened its North American Technology Center and debuted the Roadian GTX. Find out what’s in store for 2020.


Other Posts

Nexen Tire America details its 2024 U.S. motorsports program

Nexen Tire Motorsports drivers competed at the “Streets of Long Beach” Pro Championship event using the company’s N’Fera Sport R tire.

Chapel Hill Tire opens 12th location in Durham, NC

Chapel Hill Tire said the new Durham location will offer everything from routine maintenance to complex repairs.

Hankook acquires additional stake in thermal management systems company, Hanon Systems

Hankook & Company Group said it will hold a 50.53% stake in Hanon Systems and take management rights as the largest shareholder.

Handshake agreement
PRT launches 59 new complete strut assemblies

Extending PRT’s product portfolio in North America, the new release represents nearly 12M vehicles in new coverage.