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January 29, 2016 01:00 AM

USW seeks import duties on Chinese truck/bus tires (updated)

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    Tire Business photo/illustration by Scott Merryweather

    WASHINGTON, D.C. (Jan. 29, 2016) — The United Steelworkers (USW) union has filed a petition with the International Trade Commission (ITC) seeking import duties on truck and bus tires from China.

    The union, which sought and won import duties in 2014 on passenger and light truck tires from China, filed the petition today, requesting the ITC “conduct an investigation under sections 701 and 731 of the Tariff Act of 1930 regarding the imposition of anti-dumping and countervailing duties on imports of truck and bus tires from China."

    In its petition, USW claims its research shows Chinese truck tires underselling U.S.-produced products by 57 to 62 percent during the 2012-14 period. As such, the USW alleges  dumping margins of 19.78 percent, with certain customs districts having alleged margins as high as 58.2 percent.

    Tire Business file photo by Bruce Meyer

    Leo Gerard, United Steelworkers

    The countervailing duty petition alleges 39 programs provide subsidies. 

    USW International President Leo Gerard said, “Once again we are taking action to stop the unfair trade practices of China from damaging our members' good jobs and the U.S. manufacturing base.  In a period of strong demand, American industry has seen all the growth in demand go offshore, with China being the biggest problem. 

    “The inability for American industry and workers to participate meaningfully in the growth of domestic demand during the last four years is symptomatic of the problems we continue to face.  Chinese dumping and subsidization totally distort the U.S. market in tires and in many other manufactured products. 

    “We need prompt action by the Administration to prevent further harm to the domestic tire industry, just as we have been pursuing relief for our members in sectors threatened by illegal imports of steel, paper, aluminum and others.”

     According to the petition, imports from China have grown 33 percent to 8.4 million units in 2014 from 6.3 million in 2012, and increased again 7 percent last year through the first 11 months of 2015. 

     

     

    China is by far the No. 1 source of imported medium truck and bus tires, according to Tire Business research, accounting for nearly 62 percent of the 7.07 million truck tires imported in the first half of 2015. Imports from China during the January-June period rose 17.2 percent and were on pace to hit or exceed 9 million units for the entire year.  

    In 2014, truck and bus tires imports from China topped out at 8.38 million, equal to nearly half of the U.S. replacement market, based on a comparison of U.S. Commerce Department and Rubber Manufacturers Association data.

    The USW said it represents 6,000 workers at five plants in the U.S. that account for more than two thirds of domestic capacity for truck and bus tires: Bridgestone Americas in LaVergne and Waren County, Tenn.; Goodyear in Danville, Va., and Topekas, Kan.; and Sumitomo Rubber North America in Buffalo, N.Y.

    The USW, together with Titan Tire Corp., also are seeking seeking relief from imports of off-the-road tires from China, India and Sri Lanka, claiming that OTR tire imports from China and India are being dumped in the U.S. market, and that importers from all three countries are benefiting from government subsidies.

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