Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Best Places to Work
    • Rubber Division IEC
    • War in Ukraine
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • Airless Tires
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • Ask the Expert
    • Healthcare Elastomers Conference
    • Rubber In Automotive Conference
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
July 31, 2015 02:00 AM

ITC duty affirmation sparks mixed reactions

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    International Trade Commission Vice-Chairman Dean Pinkert and Commissioners Rhonda Schmidtlein and David Johanson at the July 14 meeting in which the ITC voted 3-3 to find that the U.S. tire manufacturing industry was suffering material injury because of Chinese passenger and light truck tire imports. Pinkert and Schmidtlein voted in the affirmative, Johanson in the negative.

    WASHINGTON—The United Steelworkers union was happy, others more guarded in their initial reactions to the U.S. International Trade Commission voting to levy antidumping and countervailing duties against passenger and light truck tires imported from China.

    “The outcome in the USW's pursuit of this case will not only help protect USW members and their families, but also helps protect the jobs and futures of the tens of thousands of workers employed within the U.S. tire industry,” USW International President Leo W. Gerard said in a statement issued July 14, the day of the ITC vote.

    Cooper Tire & Rubber Co., whose Chinese operation will pay duties under the new ruling, said it will monitor the market in its continuing focus on keeping the company and its customers competitive.

    “We will continue to leverage our strong global footprint, which gives Cooper the flexibility to determine the best configuration to supply high-quality, cost-competitive tires to the U.S. over the long term,” the company said in a statement.

    In addition to its wholly owned Chinese facility, Cooper has low-cost production operations in Mexico and Serbia, as well as competitive tire production in the U.S., the company said.

    Split vote

    ITC Vice Chairman Dean Pinkert and Commissioners Irving Williamson and Rhonda K. Schmidtlein voted in the affirmative to find evidence of material injury to the U.S. industry as a result of Chinese imports. Chairman Meredith Broadbent and Commissioners David S. Johanson and F. Scott Kieff voted in the negative. At the ITC, a split 3-3 vote is affirmative.

    The vote did not include discussion. The reasons for the commissioners' votes will appear in the final report it will transmit to the U.S. Department of Commerce July 27. The ITC will issue the public version of that report by Aug. 24, the agency said.

    The ITC decision makes final the antidumping and countervailing duties levied earlier by Commerce. However, because the ITC disagreed with Commerce about the existence of critical circumstances, the retroactive application of the duties—back to Sept. 2, 2014, for countervailing duties and Oct. 29, 2014, for antidumping duties—no longer applies. U.S. Customs and Border Protection, which collected the retroactive duties, will be responsible for refunds, Commerce said.

    In its June 12 final determination, the Commerce Department affirmed the final countervailing duties:

    c 20.73 percent against Cooper Kunshan Tire Co. Ltd.;

    c 37.2 percent against Giti Tire (Fujian) Co. Ltd.;

    c 100.77 percent against Shandong Yongsheng Rubber Group Co. Ltd.; and

    c 30.87 percent against all other Chinese tire manufacturers and exporters.

    In antidumping duties, the final Commerce figures were:

    c 29.97 percent against Giti Tire Global Trading Pte. Ltd. and six other Giti-affiliated companies;

    c 14.35 percent against Sailun Group Co. Ltd. and nine subsidiaries and affiliates, including Dynamic Tire Corp. and Husky Tire Corp. in Canada;

    c 25.3 percent against 65 “separate rate” companies; and

    c An 87.99 percent “China-wide” rate on all other companies.

    Racing tires, specialty tires, trailer tires, non-pneumatic tires and temporary spares are exempt from the duties.

    Second win

    The ITC determination represents the second victory for the USW in six years against Chinese tire producers and distributors.

    From September 2009 to September 2012, the union won three years of high tariffs against Chinese passenger and light truck tires under Section 421 of the Trade Act, which helps U.S. industries injured by sharp increases in Chinese imports.

    On June 3, 2014, the USW petitioned the ITC again, this time under Sections 701 and 731 of the Trade Act.

    The union asked for antidumping and countervailing duties against the Chinese, claiming the Chinese tire imports to the U.S. skyrocketed literally from the very minute the Section 421 tariffs lapsed.

    This increase in Chinese imports led to reduced production and job layoffs at U.S. tire production facilities, the USW argued.

    Representatives of Chinese tire manufacturers and importers claimed their tires did not affect U.S. production or jobs. They cited a U.S. tire manufacturing capacity rate of 91 percent, as well as $3.3 billion in new investment in U.S. tire manufacturing.

    In his comments, Gerard noted this was the first time under modern countervailing and antidumping law that a union filed an action on its own.

    “Increasingly, the question of whether our trade laws are actually going to be enforced is being left to the workers, as companies and our government are either conflicted or have different priorities,” he said. “The positive outcome may have resulted in part to recent changes in our trade laws pushed by the USW.”

    In comments other than those by Cooper Tire and the USW, Giti Tire Group said it had nothing to add to what it said June 12 when Commerce issued its antidumping and countervailing duty findings.

    At that time, Giti said it was disappointed and would formulate its course of action once the ITC had voted.

    The Tire Industry Association, which opposed the Section 421 tariffs in 2009, was actually split this time, according to TIA Executive Vice President Roy Littlefield.

    Tire dealers who sell Chinese tires in the U.S. were opposed to the new duties, Littlefield said, whereas retreaders who face stiff competition from low-cost Chinese imports favored them.

    “This is a classic situation of the NTDRA vs. the ARA,” Littlefield said, referring to TIA's forerunner associations, the National Tire Dealers & Retreaders Association and the American Retreaders' Association. “The NTDRA and the ARA would have disagreed with each other.”

    Related Articles
    Giti Tire disappointed at tire duties decision
    Antidumping decision spurs debate
    Plant-level details show real impact of China tire duties
    U.S. ITC affirms duties on Chinese tires
    Chinese agency protests duties against tires
    Publication of ITC China duties document delayed
    China slowdown worsens rubber oversupply
    Agency slightly amends duties on Chinese tires
    China's rubber recyclers predict growth
    ITC releases final report on China duties
    China tire imports drop, but still on top
    Impact of import duties still murky
    ITC releases final report on antidumping duties
    Double Coin considering plant outside of China
    TIA: Pay exemption would hurt small businesses
    USW focused on future after duties win
    Sailun to build second plant in Vietnam
    Categories of tires affected by petition
    'Unfair trade practices' spark move; Titan, USW seek duties on off-road tires f…
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Sustainability, circularity require full tire industry buy-in
    2
    VMI outlines tire technology upgrades for efficient, sustainable manufacturing
    3
    Toyo development could yield CO2-derived butadiene rubber
    4
    Michelin to invest $100 million in Kansas ag plant
    5
    Sumitomo Chemical ending SSBR, EPDM production
    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.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Best Places to Work
      • Rubber Division IEC
      • War in Ukraine
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • Airless Tires
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • Healthcare Elastomers Conference
        • Rubber In Automotive Conference
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION