As inexpensive Chinese-made automobile tires keep rolling into the United States and U.S. tire manufacturers struggle to stay in business, President Obama will soon have to decide whether or not to impose a tariff on the imports.

The U.S. International Trade Commission, a federal panel that deals with trade-related issues, voted for tariffs back in June, as The New American reported. The United Steelworkers Union pointed out at the time that 5,100 U.S. workers had already lost their jobs, and 3,000 more were in danger of losing theirs this year. According to the union, Chinese tire imports rose 215 percent from 2004 to 2008, eventually hitting 46 million tires valued at $1.7 billion in 2008.

The Washington Post noted on September 8 that the share of the U.S. market held by Chinese tires has risen from five percent to 17 percent. The Post specifically mentions a Cooper tire plant in Albany, Georgia, that is being shut down as a result of the influx of Chinese tires. More than 2,000 jobs are being lost in the small town, dealing a devastating blow to the entire community.

President Obama will need to decide by September 17 whether or not to accept the International Trade Commission’s recommendation to assess a 55-percent tariff on Chinese tires. Opponents of the tariff claim that U.S. tire makers have intentionally shifted their production of inexpensive tires overseas, allowing the companies to focus on making more expensive tires with higher profit margins here in America. Also, if China’s imports are curtailed, other countries with low manufacturing costs will just step in to fill the void.

Fu Ziying, a deputy commerce minister for China, told a news conference in August that his country hopes “the U.S. government will refrain from taking action, for the long-term healthy and stable development of U.S.-Chinese relations. The case is neither supported by facts nor does it have valid legal grounds.”

Others disagree, pointing to China’s currency manipulation and track record of protectionist policies as evidence of foul play. The previous Bush administration was asked four times to take steps to protect U.S. industries, but it chose not to do so. Now President Obama will have to decide if he will keep his campaign promise to “work to ensure that China is no longer given a free pass to undermine U.S. workers,” as his website stated.

The unemployed workers from the Albany plant provide a case in point to support tariffs. Joseph Roberts was a shift manager in the curing and finishing department, but now, at age 49, he says, “I’m starting all over again.” Byron Botdorf, 59, is attending the Albany Technical College to learn welding.

“My son got into welding — it’s a good trade,” Botdorf said. “But here’s the thing with this economy: Everything nowadays is made in China. Go to Wal-Mart. It’s hard to find anything down there that isn't made in China. The last pair of boots I bought were made in China. I don’t like buying China stuff — but you kind of have to.”

Even the Cooper company is caught somewhat in the middle because they make low-price tires in China and ship them back to the United States. For this reason, apparently, Cooper itself is oddly against imposing a tariff.

Botdorf was somewhat taken aback when he learned that Cooper was opposing the tariff, but he then noted that the company might be more concerned about its shareholders than its employees: “Leaving things as they stand might be the right thing for American companies, but something has to be done for the workers, too. Otherwise we’ll become a nation of retailers.”

Botdorf’s keen observation is an accurate assessment of the so-called free-trade agreements America has entered into with the WTO and the FTAA. These arrangements are letting the air out of America’s manufacturing capability. Only by revoking these detrimental pacts and taking care of its own citizens first can the United States re-inflate U.S. industries and get American manufacturers rolling once again.

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Bonnie said:

	... All these ill conceived treaties ... UN, NATO, SEATO, CENTO, WTO, FTAA, NAFTA, CAFTA, (proposed) NAU, and on and on it goes. Whose side is our government on, anyway? Never mind. Dumb question. We all know the answer... Big money and the NWO!
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September 10, 2009
Votes: +2

patriot said:

... People should be free to trade with any private business they choose, regardless of the country they are in. Tariffs should only cover the government expenses from customs checks, etc. There should be no profit for the government. We should conduct NO trade with China, however. Because China is communist, there is no private industry there. Any deal with a business in China is a deal with the Chinese government. Because of the slavery of Chinese workers under communism, among other violations of human rights by the government, America should not support the Chinese government, thus Americans should not trade with China, or any communist "government". If we rid America of the shackles of big government and companies are free to conduct business without unnecessary government regulations, we won't need burdensome tarriffs. American businesses should be able to compete with foreign companies, provided they do not enslave the workers under a communist or some other regime. If American businesses could not compete with legitimate foreign companies, the cause would be inefficiency that is their own fault. The free market is not only for America. If a foreign business can provide a superior product, they should be rewarded. Competition ensures a higher quality product.

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September 10, 2009
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still free said:

Inferior Products Everything I have in my house that was made in China is either broken or falling apart. None of it lasts. And yet I still have many items made in the USA that are still usable and still working--maybe they don't look sleek like the "new" stuff, but who cares? The bottom line is that the things made in China are cheap for a reason. Who feels safe riding on Chinese tires? I sure don't. And let's not forget what they did to our pets! Freedom has an address! www.jbs.org

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September 10, 2009
Votes: +2

jim said:

	... maybe the American companies should get back into making cheaper tires, too, not abandoning it to the Chinese and other Asian producer...i would not mind paying a little bit more for a Goodyear instead of a Linlong, or Sun tire...but how can you Goodyear is 150..the Chinese is 60, korean one 89...you tell me!
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September 11, 2009
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Bonnie said:

American companies and the cost of tires The Chinese company isn't unionized. The Chinese company doesn't need to follow and do paperwork on OSHA regulations. The Chinese company doesn't need to follow and do paperwork on EPA regulations. The Chinese company doesn't have to pay the employer portions of Social Security TAX (it's a TAX, not a CONTRIBUTION). The Chinese company doesn't have to have a s**t load of lawyers on staff for when one of it's cheap tires blows out at 75 mph. The Chinese company isn't burdened by income tax, property tax, sales tax, and unemployment tax (excuse me, CONTRIBUTION).

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September 11, 2009
Votes: +3

Thomas Paine said:

China is killing us Our church did a mission trip to southern Ohio (Not Africa). This town used to employ 25k factory workers. They now only employ 5k. All lost to Chinese imports. Unemployment is at 25%. Our Fascist dealings with Communist China must stop. China pays their workers $2 per day (confirmed by business associate of mine) and the worker lives in public housing. No rights, no benefits, etc. It is slave labor. We may as well employ the US prisoners and pay them $2 per day. At least the money would stay in this country.

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September 11, 2009
Votes: +3

still free said:

Exactly, Mr. Paine! Where is all the outrage about the slave labor? Remember all the trouble Kathy Lee got into with her line of clothing sold at K-Mart? Where are all those people now? More particularly, the ones in the media who hammered the story day after day? One would think all the folks who made such a hoopla over Kathy Lee's line using slave labor would have something to say about this. But instead there is just silence. Like the silence from them on the birth certificate issue. Like the silence from them on ACORN. Like the silence from them on Fannie-Mae and Freddie-Mac. Like the silence from them on the borders being wide open. Like the silence from them on the war in Iraq. Like the silence from them on the war spreading to Afghanistan. Well, you get the picture ... Freedom has an address! www.jbs.org

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September 12, 2009
Votes: +2