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March 08, 2018 01:00 AM

USTMA sends letter to Trump protesting steel tariffs

Rubber & Plastics News Staff
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    WASHINGTON—The U.S. Tire Manufacturers Association and its 10 member companies have sent a letter to President Trump, asking him to change his pending order on steel tariffs in light of the tire industry's need for high-quality imported steel.

    "We strongly urge you to consider the unintended and substantial negative consequences that trade restriction on steel imports will have for downstream U.S. manufacturers," the tire makers said in their March 7 letter.

    Trump is ordering a 25 percent tariff on all imported steel and a 10 percent tariff on all imported aluminum under Section 232 of the Trade Expansion Act of 1962. Section 232 allows the president to impose trade restrictions on any import that may pose a threat to national security.

    The U.S. Department of Commerce began a Section 232 investigation of steel and aluminum imports last year. Its report last month recommending steep tariffs on both was the major impetus toward Trump's March 1 announcement that he would levy tariffs.

    Since the beginning of the investigation, however, the USTMA and its members have said that any tariffs on tire-grade steel would have a disastrous effect on domestic tire manufacturing and the industries and consumers dependent on it.

    "Tire cord-quality steel rod is produced using basic oxygen furnace technology, which generally is employed only by foreign wire rod suppliers," the tire makers said in their letter.

    "Any action that curtails the availability of the supply of tire cord or tire cord-quality steel wire potentially could have a cascading negative impact on U.S. commerce, since the transportation industry and the military depend on a reliable supply of tires to ship goods throughout the country," the letter read.

    "Further, a disruption in tire manufacturing in the U.S. would threaten national security, since the U.S. military relies on the tire industry to provide high-performing and durable tires to aid in our national defense."

    Various sources reported that Trump could sign the tariff order as early as today.

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