Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
July 20, 2018 02:00 AM

Sumitomo's Smallwood: Imported vehicle parts have no 'conceivable negative impact'

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

    WASHINGTON — Imposing tariffs on imported auto parts would harm rather than help the U.S. auto industry and American consumers, according to Richard Smallwood, CEO and president of Sumitomo Rubber North America Inc.

    "I cannot see how Sumitomo's engagement with the U.S…could have any conceivable negative impact on national security," Mr. Smallwood said at a day-long hearing July 19 at the U.S. Department of Commerce headquarters in Washington.

    Commerce Secretary Wilbur Ross announced May 23 that the Trump administration had initiated an investigation of imported autos and auto parts under Section 232 of the Trade Expansion Act.

    At that time, Mr. Ross said there was evidence that for decades imported vehicles and vehicle parts had threatened national security by eroding the U.S. auto industry.

    Mr. Smallwood, however, said Sumitomo's activities in the U.S. only could be interpreted as helping the domestic auto industry.

    Sumitomo employs more than 1,600 workers in seven states, Mr. Smallwood said in his testimony, and supplies tires to many auto and motorcycle manufacturers in the U.S., as well as to major retailers such as Discount Tire and Pep Boys.

    Recently Sumitomo announced planned investments of up to $80 million to bring its U.S. manufacturing capacity at its plant in Tonawanda, N.Y., to 15,000 tires per day by 2020, he said.

    Sumitomo Rubber North America

    Smallwood

    "We have transferred manufacturing capacity from non-U.S. to U.S. sites to better meet our customers' needs," he said.

    Imposing Section 232 tariffs on imported auto parts would create one of two adverse reactions, or more likely a combination of the two, according to Mr. Smallwood. Sumitomo would have to increase the cost of its products to manufacturers and retailers and/or face a decrease in profits.

    "To the extent we can pass on those increased costs, they will be absorbed by our direct customers and passed on in higher sticker prices or retail prices to our consumers," he said. The costs Sumitomo can't pass on will reduce the amount of funding the company has to invest in new production or hire more workers.

    Mr. Smallwood said he was not aware of any U.S. tire manufacturer that favors Section 232 tariffs, or of any reports from the government or elsewhere that show any evidence of a national security threat caused by tires imported to the U.S.

    "We do import tires from Thailand, Indonesia and Japan — all close military allies and security partners of the U.S.," he said.

    Mr. Smallwood was one of 45 witnesses at the hearing. He was the only one who directly represented a tire manufacturer, though other tire makers submitted statements to the Commerce docket on tariffs. The statements from tire makers, as with those from other sources, overwhelmingly opposed the imposition of tariffs.

    Among the other witnesses were representatives from the Alliance of Automobile Manufacturers, the National Automobile Dealers Association, the United Auto Workers union, the Auto Care Association, the Specialty Equipment & Market Association and the Motor & Equipment Market Association.

    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].

    Most Popular
    1
    EU approves Yokohoma's Trelleborg Wheel Systems purchase
    2
    Hankook Tire confirms arrest of Chairman Cho Hyun-bum
    3
    Conti marking Euro car tires with EV-compatible symbol
    4
    Winter tire usage in Canada keeps growing
    5
    Gold Trip: Conti EV strategy remains consistent
    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
    • Instagram
    • 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.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • 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 © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION