WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) commended the U.S. Department of Commerce’s (DOC) preliminary determination that China has unfairly subsidized its tires to give them an unfair advantage in the U.S. market. Brown had previously urged the DOC to fully investigate the antidumping (AD) and countervailing duties (CVD) petitions filed by the United Steelworkers against passenger vehicle and light truck (PVLT) tires from China. In recent years, Chinese tire imports have doubled, threatening American industry jobs and competitiveness.

“Manufacturing is the backbone of the American economy and Ohio manufacturers can compete with any in the world,” Brown said. “But when our trading partners subsidize tires to give them an unfair advantage in our markets, that’s not competing – it’s cheating. When we enforce trade law, we help ensure the sustainability and quality of our nation’s tire industry.”

The United Steelworkers (USW) filed both AD and CVD petitions against Chinese PVLT tires in June. In July, the U.S. International Trade Commission (USITC) preliminarily found a reasonable indication that the domestic tire industry has been injured by Chinese tires. Today’s ruling found significant CVD margins on subsidized Chinese imports.  DOC is expected to issue a preliminary determination in the AD case on January 20, 2015.

Following efforts by Brown, the Administration imposed tariffs on Chinese PVLT between 2009 and 2011. This action was in response to a surge in Chinese PVLT imports to the U.S. market. But these tariffs expired in September 2012, and U.S. jobs are again at risk. While Chinese tire imports now account for 18 percent of the U.S. market—more than double their share in 2011, the domestic industry’s share dropped to 40 percent. Further, the price of Chinese PVLT tires is undercutting American-made tires by margins of 12 to 40 percent. To prevent further harm to American manufacturers, Brown called on the Administration to again take action to ensure American workers and businesses have a level playing field on which to compete.

Described as “Congress’ leading proponent of American Manufacturing,” Brown is a member of the Senate Manufacturing Caucus, currently Vice-Chair of the Senate Auto Caucus, and was recently named incoming Chair of the Senate Steel Caucus. In September, bipartisan manufacturing jobs legislation introduced by Brown and U.S. Sen. Roy Blunt (R-MO) was passed by the U.S. House of Representatives and moved one step closer to becoming law. Brown-Blunt would establish a National Network of Manufacturing Innovation (NNMI) and create thousands of high-paying, high-tech manufacturing jobs while enhancing the United States’ role as the world’s leader in advanced manufacturing.

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