Tariffs on Chinese consumer tyres no longer needed, says US union

Former champion of the US tariff on Chinese-made consumer tyres, the United Steelworkers, claims the trade barrier is no longer needed. In this, the week in which the tariffs first introduced on 26 September 2009 are due to expire, the USW issued a statement addressing its right to request an extension. The USW shares that it told the US Government as far back as March that it would not seek an extension.

“In his January State of the Union message, President Obama highlighted the success of the 421 relief he authorised for America’s passenger and light truck tyre producers and its workers,” said USW International president Leo W. Gerard in the statement. “Since his decision, by every measure, success has been achieved: jobs have been retained and created, production has rebounded, investments in plant and equipment have been made and many companies have returned to profitability. That’s why the law was enacted, and it worked.

“In March, the USW notified the Administration that we would not be making an extension request,” Gerard continued. “Under an unacceptable, but existing, provision of international trade law, compensation for a fourth year of relief might have had to be paid to China. We refused to pursue an option that could potentially reward China for their actions.”

Gerard also praised Barack Obama’s presidency in the USW statement: “Relief under Section 421 worked and our domestic tire sector is stronger because of President Obama’s leadership.”