Chinese import facts, per the ITC and USW

Posted on July 23, 2014

Why did the United States International Trade Commission (ITC) determine, in its own words, "there is a reasonable indication that a U.S. industry is materially injured or threatened with material injury by reason of imports of certain passenger vehicle and light truck tires from China that are allegedly subsidized and sold in the United States at less than fair value"?

Here is the fact sheet from which the ITC based its decision ("ITC says Chinese imports may be harmful").

1. Number of domestic tire producers in 2013: Nine.

2. Location of producers' plants: Alabama, Arkansas, Georgia, Illinois, Indiana, Kansas, Mississippi, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina and Virginia.

3. Employment of production and related workers in 2013: 29,000.

4. Apparent U.S. consumption in 2013: $22.3 billion.

5. Ratio of the value of total U.S. imports to total U.S. consumption in 2013: 47%.

6. Worth of consumer tire imports from China in 2013: $ 2.3 billion.

7. Worth of consumer tire imports from other countries in 2013: $ 8.2 billion.

8. Leading sources of consumer tires, in terms of value, in 2013: China, Canada, Korea and Japan.

And here are the facts as the United Steelworkers International union sees them. The USW filed the initial petitions seeking relief from "unfairly traded Chinese tires."

"The ITC’s preliminary determination is a vital step on the path to restoring fair trade in passenger vehicle and light truck tires," says USW International President Leo Gerard.

"President Obama in 2009 responded to a case filed by the USW and provided relief under a different section of our trade laws to stop a flood of these tires from China. That action helped stabilize the industry for the three years that relief was in place. But as soon as the safeguard ended, China once again targeted the U.S. market, attacking the jobs of U.S. workers. Massive dumping and subsidization of tires began to capture market share here in the United States.”

USW International Secretary-Treasurer Stan Johnson says that “while relief was in place, billions of dollars in investments were made by firms producing tires in the United States in new plant and equipment. But China’s targeting of our industry has injured our members. They work hard and play by the rules and all they want is a fair chance to compete. They deserve to have our nation’s trade laws aggressively and faithfully enforced.”

Tom Conway, USW vice president, says China’s leaders aren’t interested in following the rules of international trade. "They’re only interested in a win-at-any-cost, play-by-any-rules trade policy. The USW plays by the rules, but when other countries thumb their noses at fair play and cheat, our primary recourse is to pursue lengthy, expensive and sometimes uncertain processes to restore fairness and save our jobs. In essence, the only way we win is by losing: We have to lose jobs before we can act, and by the time relief is provided, if it even is, we’re faced with digging out of a hole.”

Gerard says the USW has brought or participated in more trade cases than any single entity. "That is not a badge of honor. It’s a sign that our trade laws are in need of dramatic reform.

“We’re waging a fight against unfair trade based on rules that are more than a quarter century old, while our competitors target industry after industry. Things must change. Workers, and America, can’t afford much more of this.”

For a different viewpoint, read "If tire tariffs are implemented, tire prices will rise again."

Related Topics: Chinese tire imports, ITC, Leo Gerard, USW

Comments ( 3 )
  • Samuel

     | about 2 years ago

    Tariffs create jobs that are already there? I only know the lower class people who cannot afford the major brands will be harmed badly. Those people will have no choice but to pay for these tariff bills. Where's their alternatives for some lower costs tire products? The major brands are ready to raise their prices for whatever reasons. It is quite painful to understand the lower class got the worst of the case. Implementing tariffs is not the answer. Let's seek some balance instead. Let's see if this APEC works better in this sense.

  • See all comments
More Stories
Jose Perez (left) and Matthew Greco explained how they increased alignment sales at their Golden West Tire Centers stores at a seminar for Big O tire dealers.

How to Sell More Alignments

How can dealers get more cars on the alignment rack? Matthew Greco and Jose Perez answered that question in a seminar at Big O Tires LLC’s annual dealer meeting last April.

"Our goal is to provide a clear and compelling 2017 Dealer Program well in advance of 2017 so that we can hit the ground running on Jan 1, 2017," says Falken Tire Corp.'s Darren Thomas. 

A Familiar Face Returns to Falken Tire

Darren Thomas proves you can go home again. Thomas, vice president of sales and marketing for Falken Tire Corp. from 2002-2008, has returned as senior vice president of sales and marketing.

This 2016 Tesla Model X P90D Ludicrous makes its world debut at the Toyo booth during the 2016 SEMA Show.

Toyo Goes 'Big' at 2016 SEMA Show

Toyo Tire U.S.A. Corp. is bringing big displays and big vehicle debuts to the 2016 Specialty Equipment Market Association (SEMA) Show in Las Vegas, Nev.


Point S Enters Another New Market: Asia

Point S is continuing its expansion around the globe, with a partnership that will bring the brand to Asia. A master franchise agreement with Goodway Integrated Industries Berhad (GIIB Group) and partners will create a dedicated company to manage and develop the Point S network.


Goodyear 3Q Results Are Due Oct. 28

Goodyear Tire & Rubber Co. will report third quarter 2016 financial results on Friday, Oct. 28, followed by an investor conference call at 9 a.m.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!