Steelworkers Union Attacks ITC’s Handling of Chinese Tire Tariffs
Photo: Jim Park
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Photo: Jim Park
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Attorneys for the United Steelworkers have laid out their case with the ways they believe the International Trade Commission erred in February when it didn’t order tariffs on truck and bus tires from China.
In its 52-page memo filed Sept. 1 in the U.S. Court of International Trade, the USW insists the vote not to impose tariffs is in contrast to the evidence presented to the commission. There are four broad issues:
The substitutability of domestic and imported tiresPriceImpact of importsThreat to the domestic industry
In all four categories, the USW says the commission’s decision wasn’t based on the evidence presented.
The substitutability of tires: The union went back to questionnaire responses filed in the case to show how purchasers, importers and domestic producers measured Chinese tires against their domestically produced counterparts. About three out of four of these respondents said the tires “were always or frequently interchangeable.”
Tire prices: Tire buyers said price was an important factor in their purchasing decisions: 80% said it was “very important,” while the others said it was at least “somewhat important.” Fourteen purchasers, of 70% of those responding, said price was one of their top three factors to consider, second only to quality, which was cited by 15 purchasers.
“Despite this high degree of substitutability and the importance of price in purchasing decisions, the commission majority determined that purchasers would choose to buy higher-priced tires due to alleged differences in branding, quality, tiers and other factors.”
The USW also says even though the commission recognized that underselling by imports was “pervasive and significant,” the ITC says it was mitigated by other factors. The USW says the evidence of dropping raw material costs wasn’t enough to offset the price depression, which is what the ITC had concluded.
“It was not correct that raw material prices declined faster than (tire) prices …Read the rest of this story
