Union praises decision upholding tariffs on Chinese tire imports

Jan. 1, 2020
A World Trade Organization (WTO) appeal panel?s decision upholding tariffs on tires imported from China is drawing praise from the United Steelworkers Union (USW), which had filed the original case.

A World Trade Organization (WTO) appeal panel’s decision upholding tariffs on tires imported from China is drawing praise from the United Steelworkers Union (USW), which had filed the original case.

“The WTO reaffirmed that President Obama’s decision to stand up for America’s workers against the flood of passenger and light truck tire imports from China were legal and justified,” reports USW President Leo W. Gerard.

“Since relief was granted by the President, the law has had its intended effect,” he says. “Investments in U.S. tire manufacturing are up, jobs have been created and our companies are shipping more tires to consumers. While we still need to accelerate our nation’s economic recovery, the economic benefits of the trade relief are clear and indisputable.”

Gerard goes on to note that “this represents an important victory for America’s workers and the resulting benefits for passenger and light truck tire producers operating here. It should signal that enforcing our trade laws is a vital part of an economic program to revitalize the economy and strengthen manufacturing.”

Tire tariffs “continue to have restraining effects on Chinese tire imports,” he says. In 2010, Chinese tire imports were 34 percent lower compared to 2008, the year before the USW filed its petition. And imports were down another 12 percent in the first six months of 2011, compared to the same period in 2010.

“Currently, the industry and its workers have experienced significant improvement in terms of production and sales of tires in the U.S. market. Companies such as Goodyear Tire and Rubber and Cooper Tire have reported significantly higher sales revenues for the second quarter of 2011, compared to the second quarter of 2010,” Gerard says.

 

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“In response to these improved market conditions, the industry has invested significantly in new capacity. Bridgestone-Firestone announced last month that it was investing $135 million to create 120 jobs in a plant in Aiken County, S.C. Cooper Tire invested some $30 million in its Findlay, Ohio plant in 2010, and Continental Tire completed a $224 million expansion of its plant in Mt. Vernon, Ill. Continental Tire has just started work on a new green field tire plant,” he adds.

Gerard says “some manufacturers have failed to take full advantage of the improved environment for domestic tire manufacturing following import relief.” He cites “at least one company that decided to close a productive facility, but overall the re-investments and expansions have demonstrated import relief is working.”

U.S. companies are hiring, according to Gerard. “Michelin employs nearly 300 more workers in their U.S. plants producing passenger car and light truck tires in 2010, compared to 2008,” he adds.

“U.S. government statistics also show that employment in the overall tire industry, which had declined by more than 25 percent between January 2005 and September 2009, has stabilized significantly since President Obama imposed the Section 421 tariffs nearly two years ago,” he says.

“In sum, the tariffs not only stemmed the hemorrhaging of jobs and investment that the flood of Chinese imports caused – they helped the industry regain its footing, retool, and expand, providing a rare bright spot in our struggling economy,” says Gerard.

For more information, visit www.usw.org.

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