14 September 2009 21:00 [Source: ICIS news]
Jim Mayfield, president of Del-Nat Tire Corporation, said that the tariff decision “was very unfortunate and disappointing and not supported by the facts”.
The White House and its office of the US Trade Representative (USTR) announced late on Friday a three-year tariffs assessment against imports of passenger and light truck tyres from China, effective on 26 September.
The tariff will be 35% for the first year, 30% in the second year and 25% in the third. These additional tariffs will be on top of the existing 4% duty assessed Chinese tyre imports under previous orders.
President Barack Obama said that he was imposing the sharply increased tariffs against Chinese-made tyres “in order to remedy a market disruption caused by a surge in tyre imports”.
The USTR office said that US imports of passenger and light truck tyres from China more than tripled in recent years, rising from 14.6m in 2004 to 46m last year, increasing China’s market share of US tyre consumption from 4.7% in 2004 to nearly 17% in 2008.
However, Mayfield argued that
He said he presented to the USTR letters from domestic
Mayfield, whose Memphis, Tennessee-based company imports large volumes of Chinese-made auto tyres, said his company was forced to seek out tyre manufacturers in
Mayfield said the White House action likely will cause shortages in low-end tyres within 30-60 days and consequently will trigger price increases for entry-level tyres and eventually for premium brands.
“As the prices for entry-level tyres increase, that will give premium brand producers the opportunity to raise their prices,” he said.
Keith Price, communications director at Goodyear Tire & Rubber Company, said the White House tariff ruling would have little impact on his firm “because we have limited exposure to the kinds of products that are currently coming into North America from
He said the
The tariffs increase was sought by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW).
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections