A business organization has joined the Tire Industry Association (TIA) in objecting to proposed import tariffs on Chinese-made tires.
The Consuming Industries Trade Action Coalition (CITAC) calls on the Obama Administration “to consider the impact on U.S. manufacturers and other downstream industries when deciding whether to accept” a tariff plan proposed by the U.S. International Trade Commission (ITC).
The ITC suggests that tariffs be imposed on car and light truck tires from China of 55 percent in the first year, 45 percent in the second year and 35 percent in the third year.
“In deciding whether to follow the ITC’s recommendation, President Obama needs to consider the potentially devastating impact of punitive tariffs on U.S. automakers who are already facing the worst economic situation in the industry’s history,” says Lewis Leibowitz, CITAC’s lawyer.
“Not only will imposing penalties drive more auto-related manufacturing jobs overseas and threaten to undo much of the Administration’s hard work to revive the auto industry, it will also invite a wave of similar 421 petitions to be filed in the future, placing U.S. downstream industries at a significant disadvantage compared to firms overseas who make competing finished products,” says CITAC executive director Eugene Patrone.
The ITC’s recommendation comes in response to a petition filed by the United Steelworkers of America (USW) under Section 421 of U.S. trade law and the China Safeguard Investigations provision. Under this section, petitioners can request the government to determine whether imports of a product from China are being brought into the United States “in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products.”
While the ITC makes a recommendation on remedies, the final decision rests with the President.
For more information, visit www.citac.info.
