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TIA Opposes New Tariff on Chinese-Made Tires

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The Tire Industry Association announced it opposes the proposal from the USW that seeks antidumping and countervailing duties on China-produced consumer tires exported to the U.S. The association previously opposed the similar measure in 2009. TireIndustryAssociation

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TIA said that while this measure, despite its well intentions, would not help preserve manufacturing jobs and could be harmful to consumers.

Below is their full statement:

On June 3, 2014, the United Steel Workers (USW), Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union petitioned the United States International Trade Commission (USITC) to determine whether passenger and LT tires from China are being imported in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the producers of like or directly competitive products. The Tire Industry Association is sympathetic to the loss of U.S. manufacturing jobs, but understands that this has occurred over the course of many years and under a multitude of trade policy initiatives.

TIA believes that a reduction of this magnitude in the quantity of Chinese tires imported would itself create a market disruption, and cause very real harm to our member companies and the U.S. consumer. Our members, by directly importing or contracting with suppliers, are meeting the demands of a segment of the tire consumer market for lower-cost tires. No manufacturing uptick would satisfy this product segment, but instead could create a need for product allocation, resulting in shortages and outages. In the best of times such occurrences are troubling, but in today’s climate could inflict severe financial harm on many retailers and on the motoring public.

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TIA believes that the USITC has the ability to guard against foreign governments supporting the sales of below-cost products, and favors anti-dumping remedies when appropriate. In addition, TIA has long supported requiring that all Chinese tires adhere to applicable Federal Motor Vehicle Safety Standards.

TIA would ask the USITC to continue to support a free-trade policy, and reject the USW’s effort to impose a protectionist policy.

The International Trade Commission has until July 18 to sort out what it will do in regard to the USW’s petition.

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