U.S. industries oppose sanction on Chinese tires

WASHINGTON, Sept. 12 (Xinhua) -- U.S. President Barack Obama's decision to impose punitive tariffs on tires imported from China has caused wide disappointment from American industries.

Roy Littlefield, executive vice president of the Tire Industry Association which opposes the tariff decision announced last Friday, said it would not save American jobs but only cause tire manufacturers to move production to another country with less strict environmental and safety controls, with less active unions and lower costs than the United States.

The sanction case was originally brought up by the United Steelworkers union in April.

The tire industry, however, did not join the case -- a tacit recognition that it has long ago left the U.S. market for the low-end tires at issue.

The powerful U.S. Steelworkers union, which represents workers at major U.S. tire manufacturers, filed a petition against China in April for import relief and won a favorable ruling from the U.S. International Trade Commission (ITC).

The commission panel recommended that Obama impose a 55-percenttariff on the Chinese tire imports which would be reduced to 45 percent in the second year and 35 percent in the third year before being removed.

President Obama has come under fierce pressure to introduce punitive tariffs on tire imports, amid warnings that a surge in the China-made goods had cost more than 5,000 jobs in the United States.

The new tariffs, on top of an existing 4-percent tariff on all tire imports, take effect on Sept. 26. The tariffs will soar by a further 35 percent in the first year, 30 percent in the second and25 percent in the third.

The American Coalition for Free Trade in Tires, a pro-business group, expressed disappointment in Obama's decision.