Coalition: 'Duties would make tires non-competitive'

An executive from a member of the American Coalition for Free Trade in Tires says the duties that the United States International Trade Commission (U.S.) wants to apply to certain consumer tire imports from China would make the tires "non-competitive."

Last week, the ITC proposed that a 55% duty be placed on Chinese tire imports during the first year of sanctions, with a 45% duty the following year and a 35% duty applied the third year. Those duties would be in addition to current duties.

The United Steelworkers originally petitioned the federal government to impose a quota of 21 million units a year on certain Chinese-built passenger and light truck tires.

While the union did not receive its requested quota, "the level of tariffs suggested" would, in reality, be equivalent to the imposition of a severe quota, says Dennis King, vice president of Dunlap & Kyle Co., a member the coalition. "A 55% tariff is way too high."

Jim Mayfield, president of fellow coalition member Del-Nat Tire Corp., agrees. "The duties they have recommended may even be more punitive" than a quota.

"An additional tariff would severely impact the ability to import anything from China. In the short term, there would be disruptions in the U.S. (market), and in the long term, that (Chinese) manufacturing base will shift to low-cost countries."

Mayfield says many of Del-Nat's stockholders have begun contacting their congressmen "to let them know the impact (duties) will have on their busineses. And that's something we feel has been lost in this whole thing... there are jobs at stake with independent tire dealers across the country."

The ITC is expected to forward its remedies to President Barack Obama shortly. President Obama will make the final ruling on the subject in September.

Related Topics: Chinese tire imports, Del-Nat Tire Corp., Dunlap & Kyle Co., International Trade Commission

comments

1. Ruben | July 07, 2009 at 06:41AM
   Protectionist measures are not the solution to the fundamental issues affecting US worker job security. The lack of of reinvestment by US companies in the existing industrial infrastructure is a far bigger cause of job losses. No amount of additional tariffs or duties is going to stop the importation of lower cost tires, manufacturers will switch to the lower cost country in order to keep their shareholders happy. It's a simple equation: obtain the most profits for the lowest amount of investment possible and the those same unions who are now seeking relief are part of the problem.

2. Sean | July 07, 2009 at 12:44PM
   Buy American. Or if you must buy Chinese Move over there and sell them. Do you salute our flag or theirs.

3. Adam | July 21, 2009 at 12:23PM
   We dont import tires from China because because we enjoy doing business with them. I deal with "mom and pop" stores every day who are just barely hanging on and the only thing that keeps their heads above water are the imports. Sure, we would love to purchase all american made tires, but if we limit the amount of imports and keep the high prices "which would probably be much lower if it werent for all the worthless unions" we would see tire dealerships all across the nation shut down.
   
   One of the things that makes this country so great, is the fact that anybody can start a small business and succeed if they are willing to work hard. The UAW is trying to make it harder for small business to survive by eliminating free trade. It seems to me that the UAW is the one who is saluting the chinese flag by trying to tell companies who they can and can not buy from.

Recent News

• Kumho teams up with Ohio State's Buckeyes
• Florida group names Gatto top entrepreneur
• Goodyear will hike tire prices up to 6%
• Goodyear Fuel Max goes border to border
• Pirelli wins OE fitments on new Mustangs
• Continental will issue benchmark bond
• Cooper kicks off Ultimate Bowl Tour
• Get the TIA room rate for green symposium
• Marangoni has big plans for Unitread in U.S.
• Titan announces tender offer for notes