US trade group opposes tariffs on Chinese tires

Shanghai, July 21 (Gasgoo.com) A business organization in the U.S. has joined the Tire Industry Association (TIA) in objecting to proposed import tariffs on Chinese-made tires, local media reported today.

The Consuming Industries Trade Action Coalition (CITAC) calls on the Obama Administration "to consider the impact on U.S. manufacturers and other downstream industries when deciding whether to accept" a tariff plan proposed by the U.S. International Trade Commission (ITC).

The ITC suggests that tariffs be imposed on passenger and light truck tires from China of 55 percent in the first year, 45 percent in the second year and 35 percent in the third year. A bipartisan group of 11 senators has written President Obama, urging him to approve the tire tariffs recommended by the ITC.

"In deciding whether to follow the ITC's recommendation, President Obama needs to consider the potentially devastating impact of punitive tariffs on U.S. automakers who are already facing the worst economic situation in the industry's history," says Lewis Leibowitz, CITAC's lawyer.

"Not only will imposing penalties drive more auto-related manufacturing jobs overseas and threaten to undo much of the Administration's hard work to revive the auto industry, it will also invite a wave of similar 421 petitions to be filed in the future," says CITAC executive director Eugene Patrone.

While the ITC makes a recommendation on remedies, the final decision rests with the President, according to Search-Autoparts.com.