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June 03, 2014

USW asks government to resume tariffs!

"Simply put, China is stealing American jobs," says USW International President Leo Gerard.
 Simply put, China is stealing American jobs,  says USW International President Leo Gerard.

The following statement was released by the United Steelworkers (USW) in conjunction with the June 3 filing of an antidumping and countervailing duty case against passenger and light truck tires from China. The case alleges massive dumping and substantial subsidization of sales of these products by China into the U.S. market. Here is the release in its entirety.

“Unfairly priced imports of tires from China have resumed flooding the U.S. market,” said USW International President Leo W. Gerard. “Domestic tire producers have been rapidly losing market share over the last two years. Domestic shipments have been undercut by skyrocketing import growth from China, and while our economy recovers, domestic producers and their workers have not adequately shared in the benefits.  

“Dumping margins identified in the case are as high as 92%. Simply put, China is stealing American jobs and the Steelworkers intend to fight for every one of those jobs.”

The USW said that China has once again targeted the U.S. passenger and light truck market. In 2009, the USW filed a safeguard action against Chinese passenger and light truck tires, the first and only such successful action in history.  

“In the four years prior to that case -2004 to 2008- imports from China had skyrocketed from 14.6 to 46 million tires, causing significant harm to the U.S. tire industry, multiple plant closures and unacceptable job losses,” said USW International Secretary-Treasurer Stan Johnson, a former tire worker. “President Obama supported our effort and during the period that relief was in place, Chinese tire imports declined to roughly half of the pre-surge level.

“But, China is at it again. After the relief provided by the president expired in 2012, China again targeted the U.S. market. Imports have more than doubled to 50.8 million tires last year, and in the first quarter of 2014 alone, imported tires from China surged an additional 24.6 percent. This is a valuable market that China wants to exploit, and action to address this problem is vital.”

“Our fight for jobs in the sector is far from over,” said USW International Vice President Tom Conway. “China is expanding its industry and has targeted the U.S. market as the place to dump product and subsidize sales. As China expands production and increases employment in this sector, it is our workers who pay the price with job losses.

“We’re proud that the Obama administration stood by Americans who work hard, play by the rules and want to be able to compete on a level playing field. The facts in this case are strong, and we expect to win again with China having to abide by its WTO commitments and fair trade rules.”

“Filing trade cases is not something we take lightly,” said Gerard. “We would prefer that countries live by the rules. But when our members are injured, the Steelworkers act. We cannot stand idly by while China steals our jobs. Enforcing the rules is a fundamental prerequisite of the trading system, and China’s cheating is seriously undermining it.   

“American workers are sick and tired of trade deals that countries like China violate before the ink is even dry.”

For a Fact Sheet on the case from the USW, click here.

Related Topics: Chinese imports, Tariffs, USW

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  1. Brian | June 05, 2014 at 08:11AM
    The tariff that expired in 2012 cost American Consumers over 1 Billion dollars. Also it did not add any more jobs than what were already projected. Is there any trade group or organization that is fighting this, who we can join together and fight this?

  2. Gus | June 05, 2014 at 08:17AM
    I would not be surprised if Chinese consumers boycott tire manufacturers producing in China that back this initiative.

  3. Ron | June 05, 2014 at 08:50AM
    The major manufacturers stopped building entry level tires before the previous tariff for economic reasons. The reason was primarily the cost of labor, since it's virtually the same for a $30 tire and a $100 tire. As Brian stated, the last tariff cost consumers a ridiculous amount of money and impacted the economy tire buyer the most. It IS my business to KNOW my business, so in any event, we'll be fine. Consumers, maybe not so much.

  4. Rob | June 05, 2014 at 12:46PM
    Nothing happened with the last tarriff, except the US companies saw an opportunity to raise the prices on evrything made in the US as well...so in the end, the consumer lost the most. There are no inexpensive tires anymore.

  5. Bobby | June 09, 2014 at 08:03AM
    China isn't stealing the jobs from Americans. It's the fact the unions put the American companies at a distinct disadvantage, since they pay someone $30 to sweep the floors of the plant. The last tariff is the very reason the average price of a tire has gone from $50 to $95. If that's not a tax on the American people I do not know what is. In 2006, Goodyear stopped building private branded tires for the most part. Therefore, China saw a need and met the demand for a competitively priced tire that the average consumer can afford.

  6. Ed | June 09, 2014 at 08:12AM
    Rob must live in China; enough said.

    Brian-checkout this link http://www.usw.org/act/campaigns/fighting-for-fair-trade You can also contact your local USW and find out if they're holding any events. Remember what happened the last time (2009) USW spoke up? Hope history repeats itself. To be clear, I have no problems with Chinese people. I have a few American-Chinese friends that wish there industries would go away. I want what's best for my economy, our country and the well being of my family even if that price is higher; Just like used tires. GET RID OF THEM.

  7. Veto | July 23, 2014 at 09:16AM
    China keeps crying that all they are supplying to the US are low end, low cost tires. That is far from the truth. The majority of Chinese tire manufacturers are also making high-performance and ultra-high performance tires that are a direct threat to the U.S tire industry. If all China was exporting tires that sold at 4 for $99, there would be no issue, but today, that is definitely not the case. We need a permanent 60% duty on any and all Chinese tires coming into the U.S. except for the super low end junk tires that no in the their right mind should even consider driving on. If China has such over capacity in tires, then maybe the government should do some R&D to figure out how to turn all those excess tires into food to feed all their hungry people in rural areas. I buy absolutely nothing made in China. Nothing.

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