Thread: How to buy American made tires

Thanks for posting this. Is it current?

Current as of fall 2007. I don't know how many of those plants have since closed.


We're getting a ton of tires made in China now imported into the US.
Here are just some foreign tires out there:

Made in China:

Kumo
Goodride (Yes, there is a brand called Goodride!)
Westlake
Vesta
Chaoyang
Triangle brand
Cindy Tyre
Yellow Sea
Black Belt
Joykin
Pegasus

Interesting. Looking around at the GSA lease vehicles and the DOE owned heavy equipment I see a lot of Hankook tires. And these vehicles ain't Hyundais.

I am thinking about getting tires as I am going on a road trip and the ones on the truck will be about worn out when I get back. Since I can afford it, why not start my trip with new tires?

I digress. The Goodyears on the truck are made in Quebec. Bummer, I live 1.5 miles outside of Goodyear. Not that they even have a presence here anymore. Even the one replacement I bought a couple years ago at the all american store, AAFES. I can't decide how much time I really want to spend on making sure my tires are made in the USA by union members.

Let me have your thoughts, inputs and whatever else you got.

I am a paying union member so don't go that way.

Pess

China calls for WTO talks on US tire tariffs

Beijing calls for talks with Washington in World Trade Organization over tire tariffs

• By Joe Mcdonald, AP Business Writer
• On Monday September 14, 2009, 7:24 am EDT

BEIJING (AP) -- China accused Washington on Monday of violating World Trade Organization rules by raising tariffs on Chinese tires and demanded talks in the WTO on the latest and most acrimonious in a string of trade disputes.

"The American side's imposition of protective measures on Chinese tires violates WTO regulations," Commerce Ministry spokesman Yao Jian said in a statement. Yao said Beijing was exercising its rights as a WTO member to demand talks to settle the dispute.

President Barack Obama approved the tariffs Friday to slow the rapid growth of U.S. imports of Chinese-made tires that have been blamed for the loss of thousands of American jobs. That drew an accusation of trade protectionism from Beijing.

Yao's statement called on other governments to oppose protectionism.

The White House said Obama acted under a provision in the U.S.-Chinese agreement on Beijing's WTO membership that allows Washington to slow the rise of Chinese imports to allow American industry to adjust.
Obama's order Friday raised tariffs for three years on Chinese tires -- by 35 percent in the first year, 30 percent in the second and 25 percent in the third.

The United Steelworkers brought the case in April and said more than 5,000 tire workers have lost jobs since 2004 as Chinese tires flooded the U.S. market.

China's government said Sunday it is launching antidumping investigations into imported U.S. auto and chicken products.

The Commerce Ministry said it would look into complaints that American auto and chicken products are being dumped into the Chinese market or are benefiting from subsidies.


Source: http://finance.yahoo.com/news/China-...1&asset=&ccode=

Background on the Tire case- a year's worth of data and testimony of unfair trade practices by China, dumping tires into the U.S. market:

http://www.usw.org/our_union/our_iss..._trade?id=0006

Coolhand-

You posted earlier today about what Stratfor was saying about the tire deal. It's a lot more complicated than what you had posted.

The main thing this is about is not trying to get or keep Union people supporting health care. The main thing this is about is exercising existing law and trade agreements that were crucial when the last administration extended "normal trading status" with China.

China is the big, big problem. In the 1990's, China wanted "Most Favored Nation Status" for years and years. When we finally signed a trade agreement with them, and gave them such status, it was contingent on them doing a number of things- which so far they have not done, and it has devastated American industry as a result.

They had agreed to language in that agreement, that in the event any industry was adversely affected, and it was because of something the Chinese Government had done (or failed to do), that there was a provision that the U. S. could impose a number of different remedies in order to slow down the destruction of U.S. industry. One of those agreement protocols was that the U.S. could impose duties (tariffs) if a case could be proved, but only for a short time, to give the U.S. industry time to adjust to the changes in China trade.

Many, many workers were displaced in the Bush II years, and many tried to have the Government invoke those provisions. But Bush II refused to enforce the law and treaty as written. The biggest problem was the value of the Yuan/Dollar exchange rate. Rather than float on the open market, which is does all over the rest of the world- the Communist Chinese fix the dollars/Yaun rate at a fixed price. Most observers say it undervalues the Yaun by at least 50% or more. If there were free markets, the free markets would correct the imbalance. But China is pushing growth so fast, and refusing to let the Yuan.

Tires is just one industry devastated by China trade. But it has a clear and convincing evidence to show that China's government owned production plants, and undervalued Yuan, has destroyed American industry without enough time to let free markets correct the problem.

Here is the dollar/Yuan exchange rate chart, from MSN. FIrst, you'll see years and years of fixed rates. After Bush II received a lot of pressure (remember the economic slowdown following Sept 11th), Bush II refused to invoke the law, but he did make some waves with China about freeing up the currency. He was promised a free-floating currency. However, what the Chinese Government did was only allow it to move a tiny fraction of an amount each month, so slow that American still could not see any benefit from the movement- but enough of movement to prevent the WTO from acting.

Here is the chart:

yuan.jpg

As you can see, the Yuan rate was pegged for years. When they finally allowed it to move, it moved VERY slowly.

Union workers were among those who elected Obama, on Obama's promise to finally enforce the trade laws already in existance. The United Steel workers filed a substantial case last spring, and, for the first time, our President has acted in accordance with our treaty.

Point #1 on the chart shows where China finally agreed to allow some movement in the Yuan.

But as you can see, at Point #2- they STOPPED devaluing it, even though it continues by free-market standards to be WAY undervalued- still considered by most to be 40% undervalued now.

The point of the tire tarrifs imposed this week, is to give time to the U.S. industry to renegotiate contracts with U.S. workers at lower rates, to keep them competitive with Chinese tires. And also to give time to the Yuan to be devalued some more, to get it more in line with where it is supposed to be.

A trade-off to get support for health care? No, not really. More like making sure that American industry can compete on a level playing field, and making sure that China knows we are serious this time. Much more direct than previously, AND fully within the existing trade agreement. The WTO won't blink twice at this, as it is in writing, and part of the agreement. No unfair trade practice in imposing the tariffs.


If we don't get U.S. / China trade in balance soon, and we don't get a handle on the trade deficit with Oil imports, we're going to be in even more of a world of hurt than we already are:

US-Trade-Deficit-GDP-July08.jpg

Is the move to put temporary tariffs on Tires within existing agreements and treaties? Yes.

Will it solve all the problems? No.

But it does show that we are serious now about fair trade policies, and the chinese need to adjust, let their Yuan begin to float again, hopefully this time faster, and try and equalize things, before all of our industry is destroyed, and there is nothing left here.

THAT's what this is about.

Not health care support form Unions. Obama already has that.

This is about no less than trying to ensure fair trading practices, and allowing U.S. industry some time to adjust to the massive growth in imported Chinese tires.

Originally Posted by James48843

Coolhand-

You posted earlier today about what Stratfor was saying about the tire deal. It's a lot more complicated than what you had posted.

The main thing this is about is not trying to get or keep Union people supporting health care. The main thing this is about is exercising existing law and trade agreements that were crucial when the last administration extended "normal trading status" with China.

China is the big, big problem. In the 1990's, China wanted "Most Favored Nation Status" for years and years. When we finally signed a trade agreement with them, and gave them such status, it was contingent on them doing a number of things- which so far they have not done, and it has devastated American industry as a result.

They had agreed to language in that agreement, that in the event any industry was adversely affected, and it was because of something the Chinese Government had done (or failed to do), that there was a provision that the U. S. could impose a number of different remedies in order to slow down the destruction of U.S. industry. One of those agreement protocols was that the U.S. could impose duties (tariffs) if a case could be proved, but only for a short time, to give the U.S. industry time to adjust to the changes in China trade.

Many, many workers were displaced in the Bush II years, and many tried to have the Government invoke those provisions. But Bush II refused to enforce the law and treaty as written. The biggest problem was the value of the Yuan/Dollar exchange rate. Rather than float on the open market, which is does all over the rest of the world- the Communist Chinese fix the dollars/Yaun rate at a fixed price. Most observers say it undervalues the Yaun by at least 50% or more. If there were free markets, the free markets would correct the imbalance. But China is pushing growth so fast, and refusing to let the Yuan.

Tires is just one industry devastated by China trade. But it has a clear and convincing evidence to show that China's government owned production plants, and undervalued Yuan, has destroyed American industry without enough time to let free markets correct the problem.

Here is the dollar/Yuan exchange rate chart, from MSN. FIrst, you'll see years and years of fixed rates. After Bush II received a lot of pressure (remember the economic slowdown following Sept 11th), Bush II refused to invoke the law, but he did make some waves with China about freeing up the currency. He was promised a free-floating currency. However, what the Chinese Government did was only allow it to move a tiny fraction of an amount each month, so slow that American still could not see any benefit from the movement- but enough of movement to prevent the WTO from acting.

Here is the chart:

yuan.jpg

As you can see, the Yuan rate was pegged for years. When they finally allowed it to move, it moved VERY slowly.

Union workers were among those who elected Obama, on Obama's promise to finally enforce the trade laws already in existance. The United Steel workers filed a substantial case last spring, and, for the first time, our President has acted in accordance with our treaty.

Point #1 on the chart shows where China finally agreed to allow some movement in the Yuan.

But as you can see, at Point #2- they STOPPED devaluing it, even though it continues by free-market standards to be WAY undervalued- still considered by most to be 40% undervalued now.

The point of the tire tarrifs imposed this week, is to give time to the U.S. industry to renegotiate contracts with U.S. workers at lower rates, to keep them competitive with Chinese tires. And also to give time to the Yuan to be devalued some more, to get it more in line with where it is supposed to be.

A trade-off to get support for health care? No, not really. More like making sure that American industry can compete on a level playing field, and making sure that China knows we are serious this time. Much more direct than previously, AND fully within the existing trade agreement. The WTO won't blink twice at this, as it is in writing, and part of the agreement. No unfair trade practice in imposing the tariffs.


If we don't get U.S. / China trade in balance soon, and we don't get a handle on the trade deficit with Oil imports, we're going to be in even more of a world of hurt than we already are:

US-Trade-Deficit-GDP-July08.jpg

Is the move to put temporary tariffs on Tires within existing agreements and treaties? Yes.

Will it solve all the problems? No.

But it does show that we are serious now about fair trade policies, and the chinese need to adjust, let their Yuan begin to float again, hopefully this time faster, and try and equalize things, before all of our industry is destroyed, and there is nothing left here.

THAT's what this is about.

Not health care support form Unions. Obama already has that.

This is about no less than trying to ensure fair trading practices, and allowing U.S. industry some time to adjust to the massive growth in imported Chinese tires.

As I'd mentioned before, I only posted a small excerpt. Some of what you mention was also part of their analysis. I won't argue the points, it's multi-faceted. But your point(s) don't necessarily negate Stratfor's point about health care. These decisions usually serve multiple purposes.

If I have time tomorrow, I'll expound.

While all this has been going on- China fixing the price of the Yuan instead of letting it float- China has moved from providing 5% of America's tires, to over 17%, just in five years. And in 2009, the numbers continue to jump, even though American tires are priced competitively, China is dumping tires from their state owned industries into our country, even in the midst of our recession:

monthly_tires_09.jpg

This unfair trade- government tire factory dumping tires into the American market, while at the same time refusing to let the Yuan float free, is destroying what is left of the American tire industry:

plant_closings.jpg

THAT is what the tire tariffs are all about- trying to gain some time for American industry to adjust to what is seen as unfair trade and unfair competition.

http://globaleconomicanalysis.blogsp...-war-with.html

I fully agree.


By the way- here is the statement of the company President in Union, New Jersey (Foreign Tires is the company name.) after the tariffs were announced:
-----------------------------------------

" FTS was and is firmly opposed to the clearly protectionist, union driven trade penalty imposed by President Obama. FTS was extremely active in opposing the petition and ultimate relief. FTS conducted a letter writing campaign and was an active member of the American Coalition for Free Trade in Tires. This group was comprised of several tire importers/distributors.

FTS is committed to supporting the Chinese factories that we purchase from.

We hope that our customers will continue to support those factories and FTS during these turbulent times.

FTS’ commitment to providing high quality, safe tires at reasonable prices continues unabated. FTS will continue to offer its customers and potential customers the highest quality customer service in the industry and we thank you for your previous and continued support.

Richard Kuskin and the entire FTS staff "


It's sad to read that Mr. Kuskin, of New Jersey, is so comitteed to supporting Chinese factories, and hopes his customers will be just as committed to supporting Chinese factories during "these turbulent times".



P.S.- For irony: The company "Foreign Tires", is based in...now get this..... UNION, New Jersey. )

Originally Posted by coolhand

As we can easily see, this issue is like an onion. I can't say how on-target this piece is, but I do know that the guy who wrote it has a dog in this fight. That calls for a little scrutiny.

Yep, that's why I identified it as an opinion piece, rather than calling it a news story.

But it is sad.

thousands of more jobs disappearing here.

That "giant sucking sound" continues.