Despite no quota, Steelworkers call remedy vote a 'victory'

June 29, 2009

Even though they aren't getting the quota they demanded, the United Steelworkers (USW) say the remedy proposals for Chinese tire imports that the U.S. International Trade Commission (ITC) recently announced are "a great victory."

On June 29, the ITC announced remedy proposals in its safeguard investigation regarding certain passenger and light truck tires from China.

The commission is proposing that President Barack Obama "impose a duty, in addition to the current rate of duty, on imports of certain passenger and light truck tires from China. This duty would be 55% ad valorem in the first year, 45% ad valorem in the second year and 35% ad valorem in the third year."

The United Steelworkers originally asked for a quota of 21 million units per year to be placed on Chinese consumer tire imports.

In a statement issued on June 29, USW International President Leo Gerard said "the tariffs voted by the commissioners should remedy the market disruptive surge in Chinese tire imports that have caused harm to the domestic (tire) industry."

The union claims that imports of Chinese-built tires have led to the closing of American tire manufacturing plants and subsequent job losses.

The ITC will submit remedies to President Obama's office by July 9.