Tough decision on Chinese tires

Posted Jul-14-09 at 12:00 AM By Jackie

According to an article from tirebusiness.com, the U.S. international Trade Commission has recommended imposing duties on Chinese passenger and light truck tire imports over the next three years. Now it’s time for President Barack Obama to decide if he agrees with the U.S. International Trade Commission or if action needs to be taken. The article states: “In fact, two of the ITC commissioners indicated they would recommend to the president that no trade restrictions be levied against Chinese tire imports because they believe that would do nothing to help the U.S. tire industry or its workers.” Because the tire industry in the United States has been suffering, there is fear that introducing these Chinese made tires into the United States market will deepen the wounds that the tire industry has already endured. Opponents of the duties say that not introducing the Chinese made tires in to the market will do nothing to help the struggling United States tire industry.  They believe it will seriously disrupt the tire market.  President Obama must decide what he will do on the matter. He does not want to complicate United States-Chinese relations and needs to take into consideration what doing this will mean for American businesses that do business in China. The article states: “Complicating the issue, President Obama also must consider that the tire industry comprises more than just manufacturing. It includes all those who sell and distribute tires—that, in pure employment numbers, far outpace that of the manufacturing segment.” Goodyear and Cooper Tire & Rubber Co. have three plants there and there is no indication if those plants will export their tires to the United States. So what do you think? Does taking cheap Chinese tires out of the market help or hurt the American tire industry? What would you do if you were President Obama?

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