According to data from the U.S. Department of Commerce, imports of Chinese passenger and light truck tires have plummeted 49.6 and 58.2 percent, respectively, in the first six months of 2015 vs. 2014.
Overall, light truck tire imports to the U.S. dropped 17.7 percent during the period, but passenger tire imports increased marginally, as the decline in Chinese products was mitigated by double-digit percentage growth from countries such as South Korea, Thailand, Indonesia, Canada and others.
Imports of medium truck tires, which are not addressed under the antidumping and countervailing duties, grew at the fastest rate during the same period with a 17-percent increase.Chinese-made tires accounted for nearly two-thirds of medium/heavy truck tire imports and nearly half of the U.S. replacement market.
Asked whether the USW might pursue duties against Chinese-made truck tires, Mr. Ranick deferred comment.
Petitioning for relief from material injury caused by import goods can be an arduous process, he noted.
“Unfortunately, the way our trade laws are designed, you can only win by losing,” Mr. Ranick said. “Even when you can prove that another country is breaking the rules and engaging in unfair trade, you also have to prove that you are being injured.
“While the laws have been updated recently, it is still a process that requires you to show job and wage losses as well as other factors to get relief,” he continued. “Too many producers in this sector and others have operations in China and elsewhere around the globe and are worried about retaliation. This is the first dumping/countervailing case where the union had to go it alone.”
Though several tire makers and dealers criticized the USW's previous efforts to levy tariffs against Chinese tire importers, Mr. Ranick claimed those tariffs proved to be effective.
“The 421 relief resulted in a rebound in employment and production in the United States, despite the closure of additional plants that had been announced before the 421 relief went into effect,” he said. “Indeed, as the USW reviewed during the final injury hearing, 421 relief changed the trend line for domestic production and imports and resulted in a regaining of market share before the relief terminated in late 2012.
“The USW is seeing increased production at facilities where it has members and is confident that the imposition of antidumping and countervailing duties on tires from China will result in improved market conditions in the United States.”
Regarding the increase in imports from other countries, Mr. Ranick said if imports from those countries “cause harm to the domestic industry and are dumped or subsidized, the USW will explore options to address such problems as they arise.”
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