TIA Voices Opposition to Restrictions on Chinese Consumer Tyres

In a statement released on June 17, the Tire Industry Association has claimed the USW initiated petition currently before the US International Trade Commission (ITC) will neither benefit consumers nor help preserve manufacturing jobs in America. While the TIA refers to the proposal under consideration by the ITC as “well-intentioned”, the organisation believes it to be one that will bring severe financial harm upon many retailers and motorists by restricting the availability of affordable tyres.

While saying it is “sympathetic” to the loss of US manufacturing jobs, the TIA says it “understands that this has occurred over the course of many years and under a multitude of trade policy initiatives.” It adds that “this attempt – no matter how well-meaning – will not result in either an increase or a preservation of US tyre manufacturing jobs.”

The USW petition seeks to restrict imports of passenger car and light commercial vehicle tyres to their 2005 level of 21 million units. While an increase of five per cent each year over a three-year period would be permitted under such an arrangement, the TIA notes it would reduce current import levels by almost half. Such a drastic change, argues the TIA, would “create a market disruption, and cause very real harm to our member companies and the US consumer.” It adds that “no manufacturing uptick would satisfy this product segment,” namely the lower-cost tyre segment, but instead could “create a need for product allocation, resulting in shortages and outages and, most likely, much higher tyre prices.”

In conclusion, the TIA says it would ask the ITC to “continue to support a free-trade policy, and reject the USW’s effort to impose a protectionist policy.”