WASHINGTON—Manufacturers of off-the-road tires from China, India and Sri Lanka are dumping their products in the U.S. market, fueled in part by government subsidies, stealing market share from U.S. OTR tire producers and jobs from U.S. tire workers in the process.
Or else lower raw materials costs, cyclical downturns in the OTR tire market and business miscalculations by Titan Tire Corp. are behind sagging prices and soft demand for U.S. OTR tires.
These were the vastly different pictures painted by petitioners and respondents at an International Trade Commission hearing Jan. 29 on the petition by Titan and the United Steelworkers union seeking antidumping and countervailing duties against mounted and unmounted OTR tires from the three Asian countries.
In 2008, Titan and the USW won their case for antidumping and countervailing duties against unmounted Chinese OTR tires. The current situation with mounted and unmounted tires from China, India and Sri Lanka is very much the same, they said in their Jan. 8 ITC petition.
“OTR tires from all three countries and the U.S. are fungible and compete across the market,” said the petitioners' presentation document at the Jan. 29 hearing.
Imports from China, India and Sri Lanka were the only source of volume increase in OTR tires during 2012-15, the period of the investigation, while imports from other countries declined, according to the document. From 2012-15, the subject imports increased their market share from 35.5 to 44 percent, it said.
“The significant increase in subject imports during a period of declining demand allowed imports to seize market share largely from domestic producers,” the document said.