Two companies explain why tariffs are wrong
In the wake of the preliminary determination by the United States Department of Commerce (DOC) to impose additional tariffs on consumer tire imports from China, two companies have openly expressed their disappointment in the decision.
In separate official statements, Sentury Tire Americas and GITI Tire (USA) Ltd., the marketing arms of Chinese companies Qingdao Sentury Tire Co. Ltd. and Giti Tire Group, respectively, outlined why they believe the recent decision was ill-advised.
"While we are disappointed with this decision, Sentury Tire is committed to delivering high quality tires at an affordable price," said Maxwell Wee, director of sales. "We are moving ahead with our new expanded Miami, Fla., warehouse and office complex in January 2015, and will be unveiling new programs and products to support our Delinte and Landsail brands, including the introduction of some exciting new all-terrain and mud-terrain tires.
"Unfortunately, we feel this action penalizes tire customers who have come to depend on our competitively priced tires that meet all applicable Federal Motor Vehicle Safety Standards.
"Sentury Tire will do all that's humanly possible to maintain a program that works for our tire distributors and dealers. We have worked hard at establishing relationships with our customers, and we will continue to deliver high quality tires and high standards for fill rate and product availability," added Wee.
While Sentury Tire's passenger and light truck tires will be taxed an additional 15.69%, GITI Tire (Fujian) Co. Ltd. and certain GITI cross-owned companies will be taxed 17.69%. (All consumer tires imported from China already are taxed 4% when they cross U.S. borders.)
"Giti Tire is very disappointed with the Department’s preliminary determination," said the company. "Giti is a private company which believes in free-market practices and competes fairly in the global tire arena. The company’s success is attributed to free trade and fair competition as demonstrated by its successful sales in more than 100 countries in a highly-competitive global tire industry.
"Giti believes that these preliminary duties do not reflect its actual circumstance. The company is seeking clarification from the department on its calculation and will continue to work with the department between now and the issuance of the final determination to ensure that Giti Tire’s actual circumstance is properly reflected in the department’s calculation.
"Giti Tire has a long-term commitment to the U.S. market, its customers, the American consumer and its American workforce. On June 16, 2014, Giti announced that it will invest more than $560 million to build a manufacturing facility to serve the U.S. market, creating 1,700 jobs in South Carolina. The company asserts this demonstrates a sustained and significant commitment to the U.S., with no intention to harm the tire industry in the United States."
For background information, check out "When will importers have to pay the tariff(s)?"