Separate Me Please, From Separating Tires
Posted by admin on 06/30/2009
Several weeks ago, ManufactureThis reported on the ongoing action by the U.S. International Trade Commission on a request by United Steelworkers in early 2009 requesting that the Administration cut the number of Chinese tire imports.
As we reported then, the petition – and the ITC’s response – was based on both the market disruptions that occurred because of China’s unfair (and often illegal) trade practices as it relates to its tires, as well as safety problems that caused two deaths, several serious injuries and a number of tire separation incidents in the U.S.
The original petition requested that the government only allow 21 million tires from China to be imported into the U.S. in the coming year, which would bring imports back to less half the 46 million units imported in 2008.
Earlier this month, the ITC ruled in favor of the petition, finding that as a result of its cheating both economically and safety-wise, China’s tires were indeed a source of concern both to U.S. manufacturers and consumers.
As AAM's Steven Capozzola noted, yesterday the ITC took further action by recommending to the White House that three years of tariffs be applied to imports of Chinese tires. Its suggested remedy would impose tariffs of 55%, 45% and 35% respectively over a three-year period and would have the same affect on decreasing the number of imports as would quotas – in fact, some analysts believe that the tariffs may even have a greater impact.
These remedies will be formally presented to President Obama on July 9, with White House action to accept or reject them due by September 17th. The ITC ruling also left the door open for either U.S. Trade Representative Ron Kirk or President Obama to impose additional tariffs or import restrictions.
So lets recap on Chinese tire manufacturers - they cheat, their tires blow up, and if history tells us anything, they are not likely to clean up their act anytime soon. With Americans headed to their cars for vacation purposes over the next few months, they want to be sure that their spouses, their children, and Fido and Fluffy are being carried to the beach or into the woods on tires that will get them there safely.
The jobs of U.S. manufacturers and their employees - who play by the rules and obey trade and safety rules that China ignores – must be protected.
Should President Obama accept the ITC’s recommendations? Should the U.S. impose corrective tariffs on Chinese tires? Um, duh.
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I just want to say, I have
I just want to say, I have been selling tires for over 10 yrs, the majority of tire problems are not from separation, but from improper inflation and tire care. If you pick up a nail, or screw, and a slow leak developes, and you are unaware of the leak, as the tire looses air it creates more heat, especially if you are rolling down the interstate ... Read Moreat 75 mph, as it seems most people do these days. This happens to all tires including US made tires. Case in point, the Nascar guys pickup debris, puctures the tire and it blows. Happens every week. They are Goodyear. So be aware, check your tires regularly for proper air, and damage. Most people don't.
I am telling you that it is not always the tires fault, consumer has to take some responsibilty for proper tire care.
I know Obama has moved slowly
I know Obama has moved slowly and steadily toward the middle since becoming President, but he campaigned hard on enforcing fair trade... this will be a very interesting decision and very telling for the future of Amercian manufacturing.
Our trade laws have been in
Our trade laws have been in place for a long time , it just that they havn't been enforced. I agree with the ITC ruling and think President Obama should accept the recommendations.