In a 4-2 vote, the International Trade Commission found that a surge of low-cost tires from China had disrupted U.S. markets. Later this month, it will recommend a remedy to President Barack Obama. The United Steelworkers union has urged him to slap limits on Chinese tire imports.
“Our domestic industries cannot survive unless our government enforces the trade laws designed to curb and dissuade anti-competitive practices that cause market disruptions,” said USW International President Leo Gerard about today’s decision. “We anticipate the remedies that will be delivered to President Obama will allow the time necessary to rebuild the U.S. tire industry.”
The steelworkers’ union argued that more than 5,100 U.S. workers lost jobs because of low-price Chinese tire imports, which increased 215% in volume from 2004 to 2008. The union said the surge of 46 million tires was worth $1.7 billion in 2008.
The union cited closings of U.S. plants by Goodyear, Continental Tire and Bridgestone Americas and said more closings are pending.
But lawyers representing Chinese tire producers said U.S. companies had already backed out of the low-range tire market before Chinese manufacturers moved in. They also noted that no U.S. tire producers had joined the steelworkers’ complaint.
The trade commission is expected to recommend a remedy by the end of this month. A presidential decision is not due until September.
“We anticipate that the final decisions on remedies will improve domestic job security, increase production and sales, and allow for investment in capital equipment to better compete in the global market for the long term,” said Tom Conway, USW International vice president. (Tire Review/Akron)
