Economy

Tariffs on Chinese tires do not save US jobs: business council

(Xinhua)
Updated: 2010-08-26 14:13

WASHINGTON - There is no evidence that the US government's decision to impose special tariffs on tire imports from China has reduced overall tire imports or saved US jobs, a leading business group in the United States said on Wednesday.

John Frisbie, president of the US-China Business Council (USCBC), wrote a letter to President Barack Obama, requesting the president to direct the US International Trade Commission (ITC) to report objectively and quickly on the impact of these punitive tariffs.

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"USCBC has found no evidence that the tariffs on low-end Chinese tires have had a positive effect on American jobs, and we suspect the tariffs have had a negative overall impact on American consumers," Frisbie said in the letter.

"US imports of Chinese low-end tires have indeed declined following the imposition of the tariffs, but low-end tire imports from other countries have increased significantly and are higher overall than before the tariffs," he added.

The Obama administration, under request of the US Steelworkers union, decided in September 2009 to raise tariffs for three years on Chinese tires -- by 35 percent in the first year, 30 percent in the second and 25 percent in the third, on allegations that imports of Chinese tires were excessive.

"Tire industry sources say that prices have increased, impacting American pocketbooks, and data from the Bureau of Labor show that tire manufacturing jobs in America continue to decline overall," the letter noted.

The group argued that to advance a constructive commercial relationship with China "requires a combination of positive engagement to expand the trade and investment opportunities that are so important to America's economy, and the use of diplomacy and sound dispute settlement mechanisms."

The USCBC called on the president not to proceed with any additional punitive tariff decisions until such an impact analysis is done.