U.S. Imposes Tax On Chinese Tires, Protects American Jobs
Press Release
Over the past five years, China has been violating international trade laws by flooding the United States with cheap Chinese-made tires. In response, the Obama Administration announced over the weekend that it would impose an import tax on Chinese-made passenger and light truck tires -- a move that Congressman Bart Gordon urged the Administration to take in May.
"This was the right decision. Chinese tire companies have been violating trade laws, which has contributed to more than 5,000 Americans losing their jobs in the U.S. tire industry," said Congressman Gordon. "We've seen the effects in Middle Tennessee -- in January, Bridgestone tires announced it would stop producing passenger and light truck tires at its La Verge plant, and hundreds of workers were laid off."
In late May, Gordon wrote a letter to the U.S. International Trade Commission, urging that Section 421 of the Trade Act of 1974 be enforced "to restore balance in international trade" of tires. "Your positive action on this matter," as Gordon explained in the letter, "is essential to saving thousands of U.S. jobs and preserving a vital part of our industrial base." Section 421 gives workers the right to seek import relief when there are surges of products that have caused injury to affected industries.
After examining the evidence, which showed that cheap Chinese tires in the U.S. market had increased from 5% in 2004 to 17% in 2008, the U.S. International Trade Commission recommended an import tax be imposed. On Friday (Sept. 11), the Administration announced it would act on these recommendations and impose a 35% import tax on Chinese tires, which will go into effect on September 26.
"When China joined the World Trade Organization, it agreed to live up to international trade laws," Gordon added. "By flooding our country with cheap tires, U.S. tire companies have not been able to compete. A crack down on Chinese tire imports that unfairly undermine American workers has long been overdue."
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