By Denna Bowman
A sharp spike in Chinese tyres imports into the US has prompted a last minute appeal to the White House less than two weeks before a landmark Presidential ruling is due.
The United Steelworkers union (USW), who instigated the trade case, updated the Obama administration on the acceleration of imported tyres from China.
It states that according to preliminary government data for August, there has been an extraordinary increase of passenger and light truck tyre imports in the US of 57% compared to this year’s first four months leading up to the April petition filing.
USW International President Leo W. Gerard testified last month that China tyre imports had swelled in July to more than 42% over the same period from January to April.
Mr Gerard said: “We fear that the ITC’s recommended relief will be inadequate for this huge spike of imports, and that September will be even worse.
“Ever since the ITC’s June finding of market disruption, we have watched with alarm as the Chinese have cranked up their exports of tyres to beat the date any remedy is applied.”
He added: “This is yet another attempt to defeat the beneficial effects of a trade remedy designed to address the market disruption and harm already caused by these imports.
“The current imports spike from China will hurt U.S. workers further if not addressed in the President’s remedy decision.”
The USW has asked the Administration to make certain that the remedy put in place fully offsets the current effort by Chinese producers and exporters to ‘beat the clock.’
It states that the trade commission’s proposed tariff remedy of 55 percent tariffs in the first year, 45 percent in the second year and 35 percent in the third year was based on the devastation inflicted on the domestic industry during 2004-08.
The President can accept, reject or modify the recommendation of the ITC and his top trade advisors. His decision is due on 17th September.