TIA disappointed with China tariff decision

ERJ staff report (TB)

Tire Business staff report

Bowie, Maryland -- The US-based Tire Industry Association (TIA) is “deeply disappointed” with President Barack Obama's Sept. 11 decision to order heavy tariffs against Chinese imports of passenger and light truck tyres.

“TIA believes this was a politically motivated decision that will end up costing more jobs than it saves,” said Roy Littlefield, the association's executive vice president, in a press release today. “These tariffs will not bring back the jobs that the (United Steelworkers) union claims have been lost. It will not create any new tyre manufacturing jobs, and it will most likely result in the loss of thousands of retail tyre industry jobs here in the US.”

The tariffs, which go into effect Sept. 26, amount to 35 percent the first year, 30 percent the second year and 25 percent the third year. These are less than the 55, 45 and 35 percent recommended by the International Trade Commission (ITC), and different from the quota of 21 million tyres (compared with the more than 46 million imported from China in 2008) requested by the United Steelworkers (USW).

“Although no formal domestic appeal of the decision is possible, TIA said it hoped President Obama would revisit it after six months-as is his right under Section 421 of the Trade Act-and go back to the ITC to either modify or remove the tariffs.

From Tire Business (A Crain publication)