The U.S. Tire Manufacturers Association (USTMA) is urging the U.S. International Trade Commission (ITC) not to impose duties on the high-quality steel used in tire manufacturing.
The ITC is pursuing possible sanctions on imported steel wire rod from Belarus, Italy, Korea, Russia, South Africa, Spain, Turkey, Ukraine, the United Arab Emirates, and the United Kingdom.
USTMA is requesting that Grade 1080 and higher steel wire rod that is used in the production of tire cord and bead wire be excluded from the ITC investigation since domestic suppliers cannot meet volume and quality needs for this critical tire safety component.
“Tire manufacturing is vital to the U.S. economy,” said Tracey Norberg, USTMA senior vice president and general counsel. “Tires manufactured by USTMA members safely transport millions of Americans and millions of tons of goods each day throughout the United States.
An economic impact study commissioned by USTMA found that the tire manufacturing industry supports 737,000 U.S. jobs and nearly $150 billion in total economic output. USTMA members operate 56 tire-related manufacturing facilities in 18 states.
Tire manufacturers use steel wire in a tire’s steel belts, providing strength, high load-carrying capacity, puncture resistance and durability, and in the bead, which holds the tire to the rim. The steel wire rod used to manufacture the high tensile tire cord and bead wire consumed in U.S. tire manufacturing plants must meet stringent performance and quality requirements.
Domestic steel mills use a production process that is unable to produce Grade 1080 and higher steel wire rod that is used in the production of tire cord and bead wire rod of consistent quality and in volumes necessary to make today’s high performance tires. Due to these quality and supply limitations, U.S. tire manufacturers must rely on wire made from steel wire rod sourced from foreign suppliers.
“Any such trade constraint could potentially have a cascading negative impact on U.S. commerce since consumers and businesses depend on a reliable supply of tires to safely move goods and people throughout the country,” Norberg said.
