Obama faces a Sept. 17 deadline to act on a recommendation by the U.S. International Trade Commission to slap a tariff on cheaper imported Chinese car and light truck tires so domestic tire makers can compete.

Tire worker unions in Gadsden and Tuscaloosa are urging Obama to put a duty on imports that unions say reduce American jobs because domestic tire makers can’t compete with manufacturers who pay lower wages and don’t have expensive environmental and regulatory restrictions.

"We’re activating our membership," said Bren Riley, vice president of United Steelworkers Union Local 12 in Gadsden and a former Goodyear Tire & Rubber Co. plant employee. "Our rank-and-file are sending President Obama letters saying we supported him in this election.

"I think this is the first true test of his commitment to organized labor," Riley said last week.

Dexter Beams is vice president of the United Steelworkers Union Local 351 in Tuscaloosa that represents workers at the BFGoodrich tire plant that he said employs about 1,250 people.

"The issue is we got so many tires coming over here from China we feel like they are flooding us," Beams said. "We’re just trying to save our factories in the United States."

The USW says more than 5,100 tire makers have lost their jobs at four domestic tire plants that have closed since 2004. As many as 3,000 more jobs could be eliminated if three more tire plants close or quit making car and light truck tires. A tire plant in Opelika already is closing.

Beams decried free trade that was supposed to equalize trade opportunities.

"If something doesn’t happen, we’re taking a good chance of losing our jobs on account of cheap labor," Beams said. "If we don’t put our foot down now, who’s going to be next?"

Riley said tire workers have used the union’s rapid response network that enables them to communicate with political leaders.

U.S. Rep. Robert Aderholt, R-Haleyville, whose district includes the Gadsden Goodyear plant, supports the ITC’s recommendation to Obama.

"Over the past several years, this plant and the entire domestic tire industry have faced growing competition from imports of passenger and light truck tires from countries whose governments do not follow the same level of labor, environmental and trade laws as is true for manufacturers in the United States," Aderholt said.

Harold Elder, an economics professor at the University of Alabama, while not commenting specifically on this issue, said tariffs in general or measures that restrict the number of cheaper products typically cause price increases for both domestically produced and imported products.

The USITC heard testimony June 29 and submitted a trade report to Obama early last month. The USITC said millions of cheaper Chinese tires are being imported and Obama should impose tariffs of 55%, 45% and 35% in three years, respectively, to bring their prices in line with domestic tires.

Tire importers said they’re already losing business and jobs because of current market conditions. Any new restrictions will hurt tire importers who employ Americans. Tire importers say if Chinese tires are restricted, tire production will move to other countries for the cheaper labor.

Obama is to host Chinese political leaders next month. China holds tremendous U.S. debt and is concerned about the U.S. economy and its effect on that debt.
Michelin North America, which owns the BFGoodrich plant, said Michelin produces tires where it sells them.

"Almost 90% of the tires Michelin sells in North America are made in North America," according to a statement released by Michelin North America spokesman Tate Hoxworth.

"Michelin has always supported a strong free trade practice that allows manufacturers to compete fairly in a global marketplace," the statement said. "Michelin North America agrees that existing U.S. trade laws should be enforced, including the assurance that all tire imports fully comply with stringent DOT guidelines and the NHTSA safety regulations." (Tire Review/Akron)