Early finding on “unfair” tire imports welcomed by USW
The U.S. Department of Commerce (DOC) has made a preliminary affirmative determination in the United Steelworkers union’s (USW) petition against cheap imported Chinese truck and bus tires.
USW welcomed the decision, saying the federal decision “confirmed what their (Jan 29) petition alleged.”
“Chinese tire producers are receiving a wide array of government subsidies and exporting those subsidized tires to the United States,” said USW International president Leo W. Gerard. “Our members can compete against any producer in the world, but it is simply unacceptable to ask us to compete against the deep pockets of the Chinese government’s state-owned enterprises.
“Unfair truck tire imports from China have denied our domestic industry the opportunity to share in production and job increases in a period of robust demand growth. The United States imported over one billion dollars of truck tires from China last year, and each of those Chinese tires means one tire less made here in the U.S. by USW members.”
Why the petition?
According to the USW’s petition, imports from China have grown from 6.3 million truck and bus tires in 2012 to 8.4 million tires in 2014 — an increase of 33 percent. The DOC says that in 2015, imports of truck and bus tires from China were valued at an estimated $1.07 billion.
The DOC has stated that following the preliminary determination, importers will need to start posting cash deposits or bonds to offset the subsidies that Chinese tire producers have received, at margins ranging from 17.06 to 23.38 percent.
The U.S. International Trade Commission (USITC) and DOCwill make their determination in November and December, with a final determination on the case expected in January 2017. Only if both departments agree will the anti-dumping case be successful.
Timeline of events 2016
USW and Titan International file petitions with the USITC and the DOC, alleging cheap off-the-road (OTR) imports from China, India and Sri Lanka are harming the country’s domestic OTR tire-producing industry.
USW files anti-dumping and countervailing duty petitions on imports of Chinese truck and bus tires with the USITC and DOC.
USITC drops investigation into cheap imports of OTR tires from China, but will continue to investigate Indian and Sri Lankan imports. Titan International says it will consider suing Chinese importers.
The USITC confirms it will proceed with investigating cheap Chinese truck and bus tire imports allegedly being subsidized and sold in the United States at less than fair value.
After an administrative review, the DOC lowers the tariffs on certain pneumatic OTR tires imported from China.
The DOC makes a preliminary affirmative determination in the USW’s petition against cheap imported Chinese truck and bus tires, allowing both it and the USITC to make final determinations.