Tire Tariff

The decision was made following a petition by the U.S. Steelworkers Union. Monday FOX Fort Wayne spoke with the Vice President of Local 715 that represents the B.F. Goodrich Tire plant workers in Woodburn. He declined an on camera interview. Union workers pushed for the tariff saying it would save and create jobs in the U-S, but others dont think thats the case. The U.S. has lost over 5,000 jobs in the tire industry in the last few years due to importing. Ryan Grose Tire Barn in Fort Wayne says most of the tires they sell are made in China. “It will probably be hard on our business because we do get everything imported.” A 35% tax will be added exclusively to Chinese imported tires. Some believe the tax will hurt consumers. Thomas Prufa , a Professor of Economics at Rutgers University says “I think for the consumer it’s going to mean higher costs. I mean there is no doubt about it.” The Tire Barn says they are concerned this might hurt business at first. They also say its important to start making more products here in the U.S. Grose says “I strongly agree, if we get more jobs in the U.S., we wont have to rely on foreign imports.” Prufa Research claims this wont create more jobs. Rather tire production will move out of China and into other countries. Prufa says “What you are going to find is 12 months from now, you are going to be buying a whole lot more tires from Taiwan and Indonesia.” There is concern the tire tariff could negatively impact Americas relationship with China. China is Americas second largest trading partner. China has filed a complaint with the World Trade Organization. This starts a two month negotiation process between the two countries. If the issue is not solved in 60 days, China can request the W.T.O to do an investigation. The tire tariff takes effect September 26, 2009.