RILA: Proposed Chinese tires tariffs cost-prohibitive

RILA: Proposed Chinese tires tariffs cost-prohibitive    The Retail Industry Leaders Association is urging U.S. trade officials to halt a proposed 55 percent tariff on low-cost tire imports from China.
   In recent comments to U.S. Trade Representative Ron Kirk, RILA said the tariff is 'not in the public interest and would come at a time when consumers are already struggling to make ends meet.'
   The U.S. International Trade Commission has proposed tariffs of 55 percent ad valorem in the first year, 45 percent in the second year, and 35 percent in the third year, while President Barack Obama has until Sept. 17 to make a determination in the case.
   'Lost in the debate of last week's public hearing on what, if any, actions the president should take to curtail imports of Chinese tires, was a discussion of the financial burden on U.S. consumers if prices on the subject tires significantly increase,' RILA said.
   Some RILA members sell, service and install the subject tires. In its written comments to USTR, RILA highlighted evidence that our members 'have seen a dramatic slowdown in consumers replacing worn and unsafe tires with new ones' as families are having to make difficult budgetary decisions. These findings are backed up by evidence suggesting that increasingly consumers are refusing advice from experts to replace tires that are not safely 'roadable,' and consumers are increasingly asking for used tires to be mounted.
   'It's the retail industry's position that imposing tariffs or quotas on affordable Chinese tires, as proposed by the ITC and petitioners, could compound the financial difficulties families are experiencing now by eliminating a low-cost option to replace worn tires,' said Stephanie Lester, vice president for international trade for RILA. 'The tariffs proposed by the ITC are cost prohibitive for consumers and fail to take into account the impact that increased costs will have on consumer behavior and safety.'