Tyre importers, marketers react to China tyre ruling

ERJ staff report (TB)

Washington DC - The American Coalition for Free Trade in Tires, a group including six private brand importers and marketers, is dismayed with the recent US International Trade Commission's (ITC) decision granting the United Steelworkers union petition for restrictions on passenger and light truck tyre imports from China.

“We're certainly disappointed in the decision. We feel strongly that import restrictions are not justified based on the facts in this case and will not benefit US producers,” said Marguerite Trossevin of the law firm Jochum Shore & Trossevin, which is representing the coalition. “The decision is now in the president's hands and we hope that he will consider the cost to American consumers and decide not to impose import restrictions that US producers never requested in the first place.”

The union claimed the sharp increase in Chinese tyre imports over the last four years led to the closure of five US tyre plants and the pending closure of three more by year-end.

The coalition was created by six US-based tyre importers to oppose the USW petition to the ITC. Members include American Omni Trading Co. of Houston; Del-Nat Tire Corp. of Memphis, Tennessee; Dunlap & Kyle Co. Inc. of Batesville, Missisippi; Hercules Tire & Rubber Co. of Findlay, Ohio; Orteck Global Supply & Distribution Co. of Gaithersburg, Maryland.; and Foreign Tire Sales Inc. of Union, New Jersey.

The ITC has scheduled a June 29 meeting to decide on the appropriate remedy for the market disruption and will send its report to President Obama July 9. The president has sole authority to order a remedy.

“The real result of this decision is that consumers who are already struggling in a weak economy may now have fewer choices, and pay higher prices for their tyres,” said Dennis King, vice president of Dunlap & Kyle.

“I hope that the president will listen to the hundreds of small businesses who provide American consumers with safe, quality tyres they need at an affordable price, and whose businesses will suffer if imports are restricted,” said Del-Nat President Jim Mayfield.

From Tire Business (A Crain publication)