Commerce Department to investigate antidumping duties on Chinese tires

WASHINGTON—The United Steelworkers union is celebrating the U.S. Department of Commerce's decision to initiate antidumping and countervailing duty investigations against certain passenger and light truck tire imports from China.

“The USW is pleased that the Commerce Department has completed a poll of domestic companies involved in the manufacture of passenger vehicle and light truck tires,” USW International President Leo W. Gerard said in a statement issued July 15, the same day the Commerce Department ruled to initiate the investigations.

That poll, according to Gerard, verified the union has official legal standing to bring the antidumping and countervailing duty charges against the Chinese tire importers.

The USW petitioned the International Trade Commission for relief June 3 under Sections 701 and 731 of the Trade Act, covering antidumping and countervailing duties.

In September 2009, the union was successful in obtaining relief under Section 421 of the Trade Act, which offers remedies to U.S. industries injured specifically by massive increases in Chinese imports. President Obama approved total first-year tariffs of 39 percent against Chinese passenger and light truck tire imports; these fell gradually to 34 percent the second year and 29 percent the third, before reverting to the usual level of 4 percent in September 2012.

Once the Section 421 tariffs ended, Chinese tire imports skyrocketed once again, according to the union. From 24.5 million in 2011, Chinese imports more than doubled, to 50.8 million in 2013, it said.

At a hearing before the ITC June 24, the USW also said it had found current dumping margins for Chinese tires as high as 92 percent, as well as more than 40 government subsidies available to Chinese tire makers, 12 of which are directly related to imports.

USW local presidents testified at the hearing about layoffs and production cuts at their plants that were directly related to the increase in Chinese imports.

However, attorneys for the Chinese tire makers said there was no evidence of material injury against U.S. tire manufacturers, judging from their latest balance sheets and activities. U.S. tire plants do not manufacture tires that compete directly with Chinese imports, they said.

At the time, the Tire Industry Association issued a statement opposing antidumping and countervailing duties against Chinese tires.

“Our members, by directly importing or contracting with suppliers, are meeting the demands of a segment of the tire consumer market for lower-cost tires,” TIA said. “No manufacturing uptick would satisfy this product segment, but instead could create a need for product allocation, resulting in shortages and outages.”

The ITC is scheduled to vote July 22 on whether preliminary evidence exists of material injury against U.S. tire makers because of Chinese imports. The commission is scheduled to transmit its findings to the Commerce Department on Aug. 1.