Nearly two months ago, U.S. Steelworkers asked President Obama to limit the amount of Chinese tires being imported into the country. The union felt that the sheer volume of Chinese tires was making it very difficult to compete for domestic manufacturers who are already being hit hard by the recession. Now the verdict is in.
The U.S. International Trade Commission ruled 4-2 today against Chinese tire exporters. The trade board found that Chinese manufacturers had nearly tripled exports between 2004 and 2008, a glut which caused plant closures and the loss of nearly 5,100 domestic jobs. These “anticompetitive practices” caused enough market disruption to enforce trade laws designed to even the playing field.
The Chinese manufacturers affected by the ruling responded with claims that US manufacturers had scaled back their offerings in the low-cost tire category, which is where foreign manufacturers are now compete. Shanghai-based GITI said they were “disappointed” with the ruling. The company believes that the ruling will only cause importers to look to other countries for inexpensive tires – not help the domestic industry. Some domestic groups, such as The American Coalition for Free Trade In Tires, sided against the ruling as well.
The Steelworkers Union, on the other hand, applauded the verdict, which they believe will give the U.S. tire industry time to get itself back on its feet.
The new 5% quota is designed to return Chinese tire imports to their 2005 level.
Filed under: Tire News, chinese tire quota, chinese tires, recession, tire industry, trade quota
[...] du commerce international (ITC) des Etats-Unis, une agence fédérale indépendante, a a publié une déclaration le 29 juin, recommandant d’imposer un tarif de 55%, 45% et 35% sur les pneus de véhicules à moteurs et [...]
[...] “US trade board rules against Chinese tire manufacturers” for the bare [...]