According to Reuters, the US International Trade Commission announced on Thursday, June 18, that China was unfairly flooding the U.S. market with tires. In a 4-2 vote, the International Trade Commission found that a surge of low-cost tires from China had disrupted U.S. markets. Later this month, it will recommend a remedy to President Barack Obama.
The petition was filed by the United Steelworkers in response to a dramatic increase in imports of Chinese tires in recent years. It would limit imports of automobile tires from China to 21 million, the level in 2005. This is roughly half the current level. In a statement responding to the ruling, USW International President Leo W. Gerard said, “Our domestic industries cannot survive unless our government enforces the trade laws that are designed to curb and dissuade anti-competitive practices that cause market disruptions. We anticipate that the remedies that will be delivered to President Obama will allow the time necessary to rebuild the U.S. tire industry.”
Yesterday, the Tire Industry Association came out in opposition to the petition. “TIA would ask the ITC to continue to support a free-trade policy, and reject the USW’s effort to impose a protectionist policy,” the group said in a press release.
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