WASHINGTON (Aug. 21, 2009) — California tire retailer ATV Inc. has added its voice to those urging the Obama administration to not impose tariffs on imports of Chinese consumer tires.
Stating that it sources up to 80 percent of its tires from China, ATV — dba American Tire Depot — said in a written filing with the Office of the U.S. Trade Representative that it would be forced to lay off up to 20 percent of its workforce of 150 should the U.S. impose the tariffs suggested by the International Trade commission and it is unable to find suitable alternatives.
ATV said in its letter to U.S. Trade Representative Ron Kirk that it is “searching for alternative sources for tires in the event that the U.S. imposes tariffs or quotas on Chinese tires; however, the company is not searching for additional supply from U.S. manufacturers.”
Even if ATV is able to locate an alternative source of supply, the dealership said it would be forced to lay off 5 to 10 percent of its workforce.
Duarte, Calif.-based ATV operates 31 outlets in southern California.
ATV's position is supported by another comment, filed by the Retail Industry Leaders Association (RILA), an association representing retailers in general.
“…imposing the ITC's recommended tariffs is clearly not in the public interest,” RILA Vice President Stephanie Lester said in a letter to Mr. Kirk. “The cost to public safety and to consumers already having diffuculty making ends meet is immeasurably greater than any benefit to a single industry or its workers.
“Accordingly, RILA urges USTR to not recommend imposing this draconian remedy.”