The US-China Business Council (USCBC) said on Wednesday that President Obama’s decision to impose special tariffs on Chinese tires did not result in an overall reduction in US tire imports and did not save American jobs.
Fu Qiangen, president of the US-China Trade National Committee, sent a letter to Obama asking the U.S. government to study the impact of tariffs on the economy. The letter said: "The US-China Business Council has not found that the imposition of special tariffs on China's low-end tires can promote the US job market. We suspect that special tariffs have brought negative impact on U.S. consumers."
In another policy brief that reviewed Obama’s decision one year ago, the committee wrote: “The low-end tires related to this case imported by the United States have actually increased substantially, but suppliers have changed from China to Other countries."
The current chairman of the committee is Mr. Mu Taikang, CEO of Coca-Cola, which represents the interests of large- and small- and medium-sized US companies in China. Members include Apple, General Electric, Microsoft, Google, Caterpillar and Wal-Mart.
Under the urging of the American Iron Workers Association in 2009, Obama decided to pay a special tariff of 35% on China-made tires.
Concerning the decline in the employment of the tire industry after the taxation of the US-China Trade Committee and the increase in tire prices, the spokesman of the U.S. Steel Workers Association, Hubbard, refuted this: “From the viewpoint of common sense, The motivations and sales practices of Chinese importers are obviously doubtful."
The U.S. Trade Representative’s Office also stated that they believe that Obama’s decision on China’s tire protection has a positive effect on US tire production and employment conditions.
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