BOWIE, Md. (Sept. 14, 2009)—The Tire Industry Association said it is disappointed with President Obama's Sept. 11 decision to order heavy tariffs against Chinese imports of passenger and light truck tires.
“TIA believes this was a politically motivated decision that will end up costing more jobs than it saves,” said Roy Littlefield, TIA executive vice president, in a press release today. “These tariffs will not bring back the jobs that the union claims have been lost. It will not create any new tire manufacturing jobs, and it will most likely result in the loss of thousands of retail tire industry jobs here in the U.S.”
The tariffs, which go into effect Sept. 26, amount to 35 percent the first year, 30 percent the second year and 25 percent the third year. These are less than the 55, 45 and 35 percent recommended by the International Trade Commission, and different from the quota of 21 million tires (compared with the more than 46 million imported from China in 2008) requested by the United Steelworkers. Despite this, the USW said it was pleased with Obama's decision.
“We are optimistic that the step taken by the president will provide real, effective relief,” said USW International Vice President Tom Conway in a press release. “Workers have a right to expect that our trade laws will be enforced. Past experience shattered those expectations. President Obama has struck a blow for restoring confidence in the rule of law.”
Although no formal domestic appeal of the decision is possible, TIA said it hoped President Obama would revisit it after six months, as is his right under Section 421 of the Trade Act, and go back to the ITC to either modify or remove the tariffs.