Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Tire Cologne canceled; rescheduled until 2022
      New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Sumitomo adds treadwear-detection to 'Sensor Core' toolkit
    • Point S posts strongest year ever in sales profit, growth, store growth
      Conlan Tire buys BestDrive locations in Ark., Okla., Texas from Continental
      DTM switches horses mid-stream; awards race tire contract to Michelin
      SEMA survey shows resilient auto aftermarket in 2020
    • Conlan Tire buys BestDrive locations in Ark., Okla., Texas from Continental
      Michelin upgrades 2 lines of Energy-branded truck tires
      TravelCenters plans 6 TA Express sites in California in 2021
      Carlisle TyrFil broadens recycling technology options
    • USTMA joins coalition supporting passage of Equality Act
      McMahon's Best-One increases its minimum wage to $15
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Conti recalling 94,000 Conti-, General-, Barum-brand LT/SUV tires
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Sentury's 10-year global expansion strategy will include plants in North America, Europe
      Rebound in car tire demand drives USTMA market forecast for 2021
      Michelin driving for '100% sustainable' tires by 2050
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Bridgestone World Solar Challenge canceled due to pandemic restrictions
      Pirelli, Goodyear ink sedan racing series contracts in Canada, Europe
      Goodyear extends partnership with Nürburgring race circuit
    • Michelin upgrades 2 lines of Energy-branded truck tires
      Falken revamps winter tire lineup with studless Eurowinter products
      Michelin launching ‘eco-responsible' performance tire for sporty EVs
      Martins Industries launches products in 3 categories
    • Detore: Early observations of industry mega deal
      Point S posts strongest year ever in sales profit, growth, store growth
      Leeds West buys New Mexico Big O store property
      BTS to host three-day virtual sales conference for its dealers
    • Pennzoil offering carbon-neutral lubricants for passenger cars
      Washington dealership uses new-school solution for recruiting auto techs
      Marinucci: Customers may ignore dangerous conditions
      Automotive Lift Institute introduces Check360 inspection, label
    • SEMA survey shows resilient auto aftermarket in 2020
      SEMA scholarships and loan forgiveness now available
      WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
    • SEMA survey shows resilient auto aftermarket in 2020
      Trade groups oppose minimum wage increase proposal
      New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
    • Sentury's 10-year global expansion strategy will include plants in North America, Europe
      Industry experts to discuss Goodyear-Cooper transaction in free livestream
      Rebound in car tire demand drives USTMA market forecast for 2021
      Michelin launching ‘eco-responsible' performance tire for sporty EVs
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Safety tips for wheel balancing
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
    • Video: Demounting
      Tire changer types, tips and trends
      How to clear rim rust and corrosion
      An introduction to demounting, mounting and inflation
    • Video: Safety
      Customers
      Considerations for shop safety policies
      Introduction: Creating a culture of safety
    • Video: Tire Repair
      Essential tools, materials and equipment for tire repair
      An introduction to tire repair
      How to properly patch a puncture
    • Video: TMPS Service
      The life-saving work of TPMS
      An introduction to TPMS service
      The importance of proper relearn procedures
    • Video: Training
      Internship ideas to attract tech talent
      Choosing the right auto service tech school
      Intro: Finding and training technicians
    • Video:Vehicle Lifting
      The gravity of proper lift points
      Safety essentials when using jack stands
      An introduction to lifts and lift safety
    • Video: Wheel Torque
      The importance of torque specifications
      Introduction to proper wheel installation
      Torque check and recheck recommendations
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
February 15, 2016 01:00 AM

Commerce Dept. is busy with tire issues

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    WASHINGTON—The tire industry is occupying a great deal of the U.S. Department of Commerce's time these days as it deals with separate petitions from the United Steelworkers (USW) union to consider action on imports of certain pneumatic OTR tires from China, India and Sri Lanka and truck and bus tires from China.

    Commerce already has agreed to proceed with antidumping and countervailing duty investigations of pneumatic OTR tires from China and India and a countervailing duty investigation of OTR tires from Sri Lanka.

    Separately the agency has scheduled a preliminary hearing Feb. 19 to determine the merits of the USW's petition regarding truck and bus tires from China, which the union claims undersold U.S.-produced products by 57 to 62 percent during 2012-14.

    Titan Tire Corp. is supporting the USW's call for action on OTR tires. Both Titan and the union filed petitions with the International Trade Commission (ITC) Jan. 8 seeking action.

    In antidumping and countervailing duty investigations, it is the role of Commerce to determine the rate of dumping and subsidy margins, and the ITC's to determine whether the domestic industry is being materially injured because of dumping and subsidies.

    At a Jan. 29 ITC hearing on the OTR tire issue, importers of OTR tires from China, India and Sri Lanka claimed the Titan/USW petition for import duties is a gross misinterpretation of the facts, saying a cyclical downturn in the original equipment OTR market, not increased imports from Asia, are responsible for Titan's reduced OTR tire sales.

    Additionally, they contended that lower raw materials costs, not increased imports, caused the decline in OTR tire prices in the U.S.

    The tires covered under the Commerce investigation are both tubeless and tube-type, radial and bias, original equipment and replacement, the agency said in a Feb. 4 fact sheet on the investigation, and restricted to tires with rim diameters of 39 inches or less.

    Excluded from the investigation are unmounted Chinese OTR tires, which are covered under a previous antidumping and countervailing duty order from 2008. Titan and the USW were also the petitioners in this case filing in 2007.

    The alleged dumping margins in the case are 11.2 to 77.69 percent for Chinese tires, 10.77 to 76.45 percent for Indian tires, Commerce said. Estimated subsidies for all three countries were above de minimis, which Commerce defines as less than 1 percent for developed countries, less than 2 percent for developing countries.

    According to Department of Commerce data, China is the No. 1 source of imported agricultural/implement and construction/industrial tires, accounting for 46 percent of 2.19 million ag tires and 43 percent of 2.62 million construction tires imported into the U.S. last year. (See table at right)

    The ITC is scheduled to make a preliminary determination on the case Feb. 19 and transmit its decision to Commerce Feb. 22.

    If the ITC's determination is affirmative, Commerce will make a preliminary determination on countervailing duties on or about April 8, and on antidumping duties on or about June 22.

    If the ITC makes a negative determination, the investigation will be terminated.

    The USW said it represents workers producing OTR tires at Titan International Inc., Bridgestone Americas Inc. and Goodyear at six plants in Illinois, Iowa, Kansas and Ohio. Neither Bridgestone nor Goodyear has voiced support for the petition. Michelin North America produces OTR tires at two plants in South Carolina.

    As for truck tires, the union—which sought and won dumping and countervailing duties in 2014 on passenger and light truck tires from producers in China—is 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.”

    The union alleges dumping margins on truck tires of 19.78 percent, with certain customs districts having alleged margins as high as 58.2 percent. The countervailing duty petition alleges 39 programs provide subsidies.

    “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,” USW International President Leo Gerard said in a statement. “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,” he said. “We need prompt action by the administration to prevent further harm to the domestic tire industry....”

    According to the petition, imports from China grew 33 percent to 8.38 million units in 2014 from 6.3 million in 2012, and increased again last year.

    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 14.4 million truck tires imported in 2015. Imports from China last year rose 6.3 percent to 8.91 million units, according to the latest Commerce statistics.

    As such, truck and bus tires imported from China represent nearly half of the U.S. replacement market, based on a comparison of U.S. Commerce Department and Rubber Manufacturers Association data.

    The customs value of the Chinese truck tires is $1.07 billion, or $120.22 per tire, the Commerce Department data show. This is down from the $128.38 per tire average in 2014.

    During the two years studied by the USW in its petition, U.S. demand for truck/bus tires rose by 1.8 million tires, or 8.45 percent; imports from China grew by one-third, or 2.1 million tires.

    “As a result,” the union said, “domestic producers saw their shipments decline by 800,000 tires, or 7.48 percent, and they participated in none of the demand growth over the period.”

    The USW contends in its petition that U.S. and Chinese truck and bus tires are essentially interchangeable, offered along the same array of sizes and products including steer, drive, trailer and all-position tires.

    All types of truck and bus tires share common production facilities, production processes and employees, according to the petition. Customers and producers alike perceive all truck and bus tires as similar products, and they are offered along a continuum of prices, it said.

    The USW represents the workers at five of the eight truck and bus manufacturing facilities in the U.S.—Bridgestone Americas in LaVergne and Waren County, Tenn.; Goodyear in Danville, Va., and Topekas, Kan.; and Sumitomo Rubber North America in Buffalo, N.Y.—encompassing approximately 6,000 workers and nearly two-thirds percent of daily domestic truck and bus tire manufacturing capacity.

    None of the domestic tire makers has thus far voiced support for the USW's petition.

    To reach this reporter: [email protected]

    Related Articles
    China to lobby against truck/bus tire duties
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award