Posted on 07/07/2009 6:43:38 AM PDT by envisio
An executive from a member of the American Coalition for Free Trade in Tires says the duties that the United States International Trade Commission (U.S.) wants to apply to certain consumer tire imports from China would make the tires "non-competitive."
Last week, the ITC proposed that a 55% duty be placed on Chinese tire imports during the first year of sanctions, with a 45% duty the following year and a 35% duty applied the third year. Those duties would be in addition to current duties.
The United Steelworkers originally petitioned the federal government to impose a quota of 21 million units a year on certain Chinese-built passenger and light truck tires.
While the union did not receive its requested quota, "the level of tariffs suggested" would, in reality, be equivalent to the imposition of a severe quota, says Dennis King, vice president of Dunlap & Kyle Co., a member the coalition. "A 55% tariff is way too high."
Jim Mayfield, president of fellow coalition member Del-Nat Tire Corp., agrees. "The duties they have recommended may even be more punitive" than a quota.
"An additional tariff would severely impact the ability to import anything from China. In the short term, there would be disruptions in the U.S. (market), and in the long term, that (Chinese) manufacturing base will shift to low-cost countries."
Mayfield says many of Del-Nat's stockholders have begun contacting their congressmen "to let them know the impact (duties) will have on their busineses. And that's something we feel has been lost in this whole thing... there are jobs at stake with independent tire dealers across the country."
The ITC is expected to forward its remedies to President Barack Obama shortly. President Obama will make the final ruling on the subject in September
(Excerpt) Read more at moderntiredealer.com ...
So much for dem's/union's promise to look after the small business owner.....
Good Year just had a big layoff at their Union City, TN truck tire plant.
If we continue to allow slave labor-made goods to dominate our markets, slave labor-made goods will be all most people can afford.
Not just mom & pop shops. Many discount auto suppliers like Pep Boys carry imported (possibly Chinese?) tires. Actually, it seems like almost all tires ae imports; my new Pirellis were made in Brazil.
“””Good Year just had a big layoff at their Union City, TN truck tire plant.”””
....and I have about 16,000 medium truck Goodyears waiting on backorder. Go figure that.
Reagan did the same thing with several industries. The result was that the foreign makers built plants here. In that sense we have Reagan to thank for Toyota employing Americans.
However, Reagan didn’t have the environmental issues preventing new plants from being built here.
You may be right, but I wouldn’t put a Chinese tire on my car if they paid me in Yuan, which is better than the dollar these days. Some times I can afford crap quality made by impoverished and oppresed labor, but not in my tires.
We don’t have a CONSTITUTIONAL RIGHT to a good paying job..
I won’t buy cheap Chinese tires. I’ve seen what happens when one of those things disintegrates at high speed.
Only quality tires on my cars. Cheap tires kill.
As a long time supplier to GY, I have to say I’ve never come across a more confused and f’ed up corporation. Typical payment on invoices is 85-90 days.
I didn’t even know we had Chinese tires. What brands? Or are they store brands?
Pep Boys has their own distributing warehouses and they buy direct from Mast, Goodyear, et al.
They also have their own house brands like WalMart and Sears that are affiliates of major brands. (Dayton = Firestone, Ryken = Michelin)
You might do it and not even know it. Then again some dealer may sell you a tire that is the wrong application (not just talking size here) but sell it under “made in America” banner but it actually be more dangerous than the China tire that is the correct application.
When we stop making things here, a lot of people lose their jobs. Those people then vote for socialism / fascism. Then the few of you who still have money get to deal with the repercussions. Hope you enjoy your cheap tires.
“What brands?”
They change. One day it could be one brand and the next it could be different. The same factories change brands depending on the flavor of the week.
Very possible, and you’re correct, I might never know. But at least, in that case, I can sue the living rat$@!# out of the guy that sold them to me along with the manufacturer, assuming I survive and don’t spend the rest of my days sucking chicken through a straw. Try doing that to a Chinese company. Life’s full of risk, but I’ll hedge my bets on a tire made in a country that doesn’t also export lead-tainted toys, methylamine-infused pet food, industrial waste formulated phosphogypsum board that corrodes air conditioners and jewelry when outgassing sulfur.
...and yet they demand payment within 30 days.
Then the mom and pops need to form a purchasing group like small restaraunts do. The purchasing group buys in bulk and warehouses the tires, delivers them to the stores as needed, and pay a membership fee to the group to get the better pricing.
This is how the restaraunt food service world works, that’s effectively what SYSCO and EMCO etc are. They get the big discounts because they buy in huge bulk for small mom and pops and such that join together.
Sounds like a business opportunity if this tarrif passes... easily a very nice annual revenue stream too.
Don’t worry. Franklin Roosevelt did the same thing 80 years ago and look how well THAT worked out!
The issue with ANY Chinese good is that they ALWAYS try to slip in some inferior product. ALWAYS. Its not an if they will its just a when and how often. They may ship you 1000 perfect shipments, then that 1001 will be insanely subpar.
That’s the reality folks. If you are receiving any item from China and do not engage in your own QA after receipt, you are playing with fire.
While you are correct, please keep in mind that many of the top tire manufacturers produce tires in a wide variety of countries, including China. I found this out when picking out my Pirellis. Actually, Tire Rack will show country of manufacture or you can ask sales associates if no country is indicated. I was surprised to learn tires are made in Romania, not the first country I think of when tire manufacturing comes to mind.
That choice being a P245/70/17 Michelin or a LT245/70/17 WanLi, I would choose the WanLi. Even though its cheap and china made, its still a better application fit than the Michelin. Someone would die with those P245/70/17 Michelins on.
Of course I would rather have the LT245/70/17 Michelins but I happen to know they are backordered and allocated only to dealerships right now.
A tire store that wanted to make a sale would put the P245 Michelins on there and it would be WRONG.
You Pirellis are made in:
Argentina
Austria
Brazil
Germany
Spain
United Kingdom
Italy
Netherlands
Singapore
Turkey
Venezuela
...per “2008 Who Makes It And Where Tire Directory” that is sitting here on my desk. ;)
Also, keep in mind the DOT # has a number for the plant that it was maufactured in.
Thanks for the complete list. As stated in my original message, Brazil is where my Pirelli Scorpion ATRs were manufactured.:)
You buy the expensive Chinese tires then??? Not many major brands are still made in the U.S...
Some come OE with 20, but more than likely it was a dealer installed wheel&tire package to make it look better.
you gotta point there
Ford offers a 20” wheel/tire as an option on the trucks.
I don’t see China on that list of yours which is fine by me.
In a way, you're right. But in the long term, a healthy US economy must be plugged into global trade.
What happens, when a US coporation shifts work overseas, it saves money but sends workers to the unemployment line. But automation also sends workers to the unemployment line as well. So, what is at the heart of the issue is, is society able and willing to retrain the workers for other job roles that support either automation or trade? If it is done too quickly, then, as you say, it creates a volitile political situation. Trade (as well as automation) must be done at a pace as to not disrupt social order.
But the other side of the coin, is that not all workers want to go willingly. And this is something that many people have a hard time being sympathetic to. A person, who had a high paying blue collar job right out of high school now has to re-learn a new set of skills, whether it be computer programming, etc. Many times, people are not willing to retrain themselves and move onto occupations that pay better wages than their old jobs, but requires more arduous studies. This is where, I believe, people will have a hard time being sympathetic.
In short, tarriffs are fine at first to allow time for workers and companies to adjust, but in the long term, they must come down, whether or not workers or companyies were wise enough to adapt.
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