Obama to impose tariffs on Chinese tires

[ALS]

Governments around the world have suggested the United States talks tough against protectionism only when its own industries are not threatened.

Jennifer Loven - YAHOO - Sept. 12, 2009

I saw Michelin SUV tires a few months ago with Made In China on the sidewall -- Ed.

President Barack Obama on Friday slapped punitive tariffs on all car and light truck tires entering the United States from China in a decision that could anger the strategically important Asian powerhouse but placate union supporters important to his health care push at home.

Obama had until Sept. 17 -- next week -- to accept, reject or modify a U.S. International Trade Commission ruling that a rising tide of Chinese tires into the U.S. hurts American producers. A powerful union, United Steelworkers, blames the increase for the loss of thousands of American jobs.

The federal trade panel recommended a 55 percent tariff in the first year, 45 percent in the second year and 35 percent in the third year. Obama settled on slightly lower penalties -- an extra 35 percent in the first year, 30 percent in the second, and 25 percent in the third, White House press secretary Robert Gibbs said.

"The president decided to remedy the clear disruption to the U.S. tire industry based on the facts and the law in this case," Gibbs said.

By taking "this unprecedented action, the Obama administration is now at odds with its own public statements about refraining from increasing tariffs above current levels," said Vic DeIorio, executive vice president, GITI Tire (U.S.), the largest manufacturer of tires in China

The decision comes as U.S. officials are working with the Chinese and other nations to plan an economic summit of the Group of 20 leading rich and developing nations in Pittsburgh, to be held Sept. 24-25. China will be a major presence at the meeting, and the United States will be eager to show it supports free trade.

Many of the nearly two dozen world leaders Obama is hosting have made strong statements critical of countries that protect their key industries. Obama, too, has spoken out strongly against protectionism, and other countries will view his decision on tires as a test of that stance.

Governments around the world have suggested the United States talks tough against protectionism only when its own industries are not threatened. U.S. rhetoric on free trade also has been questioned because of a "Buy American" provision in the U.S. stimulus package... [Read More]

[Indigo]

I wouldn't mind seeing a steep tariff on ALL Chinese products. Maybe we can start having manufacturing in the USA again.

[Tochatihu]

As you might imagine this story has been heavily covered on the west side of the Pacific. What we hear is that US tire manufacturers have already stepped out of the 'small-tire' market. One scenario for the 3 tariff years is higher prices in that segment, fewer tires sold, and negative financial mpacts on US installers and resellers.

Not really taking a side in the argument, but I don't want any CleanMPGers skating around on less than 3 mm of tread. If yours are getting thin and the next set are made in China, buy 'em quick.

Might already be too late? I don't know how fast these price adjustments diffuse into the marketplace.

DAS

[rkpatt]

The Chinese budget brands that I have seen didn't like the were worth buying the market (appearance of poor quality) . However, their presence helps keep the price of more expensive. This act will drive up prices on US made and imported tires from other countries and thus hurt the consumer . More accidents because driving longer on on old tiers. (bald or "used " tires) .

I agree -

"Not really taking a side in the argument, but I don't want any CleanMPGers skating around on less than 3 mm of tread. If yours are getting thin and the next set are made in China, buy 'em quick."

[Earthling]

My buddy has Chinese motorcycle tires on his bike. He's lucky to get 4,000 miles out of them. Even if they cost half as much, it isn't worth it for the hassle of having to get new tires more than twice as often.

I'll stick with the expensive German Metzler tires on my bike. I get closer to 10,000 miles out of them, and I trust those tires. I have to, since tires are a big safety item on a motorcycle.

Harry

[Blackbelt]

Originally Posted by Earthling

My buddy has Chinese motorcycle tires on his bike. He's lucky to get 4,000 miles out of them. Even if they cost half as much, it isn't worth it for the hassle of having to get new tires more than twice as often.

I'll stick with the expensive German Metzler tires on my bike. I get closer to 10,000 miles out of them, and I trust those tires. I have to, since tires are a big safety item on a motorcycle.

Harry

That's a great point Harry! let the market decide which tires represent the best value. This is anti consumer. What we are seeing is Obama paying the unions back for their support. Politics as usual, no "change we can believe in". Every president has done crap like this, and Obama is no different, even though he claimed he would be.
I refuse to buy Goodyear or Firestone tires. Why? Because they are crap. I have had the best luck buying cooper and K-S tires. They are cheaper and last longer. Never had any Chinese made tires, not sure if i would buy them, but i would like to have been able to make that choice without the protectionist crap.

[Tochatihu]

The Nokian i3 tires I installed in October 2005 were 'Engineered in Finland' and manufactured in China.

I don't know how much of Nokian's manufacturing they've relocated, or about other brands.

Seems a feller could go down to local tire store, look around, and make a report to the group, if he felt like it.

DAS

[worthywads]

www.tirerack.com has thousands and thousands of reviews of tires, if the chinese tires are worthless there will be ratings that reflect it. I wouldn't buy a tire without consulting tirerack. We sure don't need a tariff.