ITC issues public version of report to Obama on Chinese tyre imports

ERJ staff report (TB)

Washington - Members of the US-based International Trade Commission agree that imports of Chinese passenger and light truck tyres have increased sharply over the last few years and the US tyre industry has suffered material injury during that period. But they differed sharply on whether increased Chinese imports caused the injury.

At least 80 percent of the tyre makers, importers and purchasers queried by the ITC said US- and Chinese-made tyres are “always” or “frequently” used interchangeably, demonstrating that they compete in the US market, the majority of commissioners noted in the agency report sent 9 July to President Obama and the Office of the US Trade Representative. The ITC placed a public version of the report on its Web site 14 July.

But the minority noted that tyre imports from countries other than China, though decreasing between 2004 and 2008, still accounted for two-thirds of the tyres imported to the US in 2008. Furthermore, US tyre companies were responsible for many of those imports, the minority noted. US tyre makers have already rationalised their production to fit the global tyre marketplace, and punishing Chinese tyre makers won't change the plans of US tyre makers, the minority said.

By a 4-2 vote 29 June, the ITC recommended three years of duties on Chinese tyre imports of 55 percent the first year, 45 percent the second and 35 percent the third, instead of the quota of 21 million Chinese tyres the United Steelworkers had asked for. If the Obama administration must take action against Chinese tyre makers, the minority said in the new report, it should be 41.5 million tyres with the recommended tariffs levied only on Chinese tyres that exceed the quota.

President Obama has until 17 Sep to make his decision on whether to levy tariffs or quotas against Chinese tire makers under Section 421 of the Trade Act.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

ITC issues public version of report to Obama on Chinese tyre imports from Tire Business (a Crain publication)