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UPDATED: Tariff Investigation of TBR Tires Will Continue, Says ITC

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The U.S. International Trade Commission (ITC) has voted to continue its investigation of truck and bus tires imported from China.

The ITC voted 4-2 on March 11, 2016, to continue the preliminary investigation. This U.S. Department of Commerce (DOC) also is investigating whether imported truck and bus tires from China are being dumped in the U.S. market, and whether the Chinese government is providing financial subsidies to help manufacturers there flood the American market.

As a result of the ITC's vote, the DOC will continue its fact-finding mission. The DOC's preliminary countervailing duty determination is due on or about April 25, 2016, and its preliminary anti-dumping duty determination is due on or about July 7, 2016.

The ITC will issue a report explaining its views after April 11, 2016. It will be available here.

In the meantime, the ITC provided this snapshot of the truck and bus tire industry in the U.S.:

In the U.S.:

Number of producers in 2015: 4

Locations of producers' plants: Illinois, Kansas, New York, South Carolina, Tennessee, and Virginia

Employment of production and related workers in 2015: 6,423

Apparent U.S. consumption in 2015: $5.9 billion

Ratio of the value of U.S. imports to U.S. consumption in 2015: 43%

U.S. imports:

Value of imported tires from China in 2015: $1.2 billion

Value of like tires from other countries in 2015: $1.3 billion

Leading import sources, other than China, in 2015: Canada, Japan, and Thailand.

The United Steelworkers union, which filed the petition seeking protection from the Chinese imports, says the products shipped from China are threatening American jobs.

"China is stealing our jobs, and we have to stop its unfair trade practices," says Leo Gerard, USW international president. "China's ongoing attack on our members' jobs and the U.S. manufacturing base is unacceptable. In a period of strong domestic demand in this sector, the American industry has seen all the new opportunities go offshore, with China causing the most problems.

"Chinese dumping and subsidization totally distort the U.S. tire market and other manufactured products."

This study of truck and bus tires comes as the same entities investigate the affect of imported off-the-road tires from Sri Lanka and India on the U.S. market. The two investigations are independent of each other, but the United Steelworkers is alleging the imports in both cases affect the domestic industry.

To read all of MTD's tariff coverage, click on the "Tariffs" menu in the center of the MTD homepage at www.moderntiredealer.com.

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