Retailers Oppose Tariffs on Chinese Tires

In comments filed with the United States Trade Representative, the Retail Industry Leaders Association warned that imposing a 55 percent tariff on low-cost Chinese tires "is not in the public interest and would come at time when consumers are already struggling to make ends meet."

The U.S. International Trade Commission recently proposed imposing such tariffs on certain Chinese passenger and light truck tires, amounting to 55 percent ad valorem in the first year, 45 percent in the second year, and 35 percent in the third year. The office of the USTR is currently requesting public comments on possible actions before making its recommendation to President Obama, who has until September 17 to make a determination regarding the case.

"It's the retail industry's position that imposing tariffs or quotas on affordable Chinese tires, as proposed by the ITC and petitioners, could compound the financial difficulties families are experiencing now by eliminating a low-cost option to replace worn tires," said Stephanie Lester, vice president for international trade at RILA. "This, unfortunately, could force consumers to delay the replacement of unsafe tires, which would clearly not be in the public interest." Some RILA members sell, service, and install the tires that would be subject to these duties.

In its written comments to USTR, RILA highlighted evidence that member companies "have seen a dramatic slowdown in consumers replacing worn and unsafe tires with new ones" as families are being forced to make difficult budgetary decisions. These findings are supported by evidence suggesting that more and more consumers are refusing advice from experts to replace tires that are not safely "roadable," and consumers are increasingly asking retailers to mount used tires.

"The tariffs proposed by the ITC are cost prohibitive for consumers and fail to take into account the impact that increased costs will have on consumer behavior and safety," said Lester.

RILA's membership includes more than 200 retailers, product manufacturers, and service suppliers, accounting collectively for more than $1.5 trillion in annual sales.

Contact Alan M. Field at afield@joc.com.