The U.S. removed anti-dumping tariffs on China's tire manufacturers. (Photo : Getty Images)
In a 3-2 vote in favor of China, the U.S. International Trade Council said that Chinese tires should not be imposed anti-dumping and countervailing taxes.
The decision means that the U.S. Customs and Border Protection will not collect anti-dumping and countervailing duties from Chinese truck and bus tire manufacturers and importers.
A petition was filed by the United Steelworkers (USW) union last year to protect American tire manufacturers from losing out in the competition.
Upon the filing of the petition, duties rose from 9 percent to 22.57 percent. Guizhou Tyre Co. Ltd. had to pay an increase to 63.34 percent from 65.46 percent.
Cooper Tire & Rubber Co., a tire manufacturer in China, welcomed the decision. They said that they "supports free and fair trade, and we are pleased with the ITC's determination."
However, the USW released a statement that expressed their disappointment. Union President Leo W. Gerard said, "The ITC commissioners made a huge mistake."
He added, "Anybody considering all the facts, including the record profits for American manufacturers and their inability to even come close to satisfying domestic truck and bus tire demand, would have to conclude that this was the right thing to do."
"That simply ignores the facts and the harm that Chinese unfairly traded exports have caused the workers," the union leader said.
China's Ministry of Commerce, on the other hand, said that the decision was logical. The head of the ministry described the decision as "objective and fair."
He added, "We hope the two countries' tire industries strengthen dialogue and communication, effectively manage and control trade disputes, and maintain an open and fair trade environment for the good of the people of China and the U.S."
The Union's petition affected U.S.-China trade. In 2015, the sale of truck tires fell to $1 billion from $1.5 million in 2014.
China supplies 55 percent of America's truck tires.
