US trade board rules against Chinese tire makers

The U.S. International Trade Commission issued a ruling against China's tire manufacturers on Thursday, saying their increased exports are damaging U.S. tire makers.

The 4-2 ruling against the Chinese tire makers marks a victory for the United Steelworkers union, which filed a complaint with the trade commission in April. The union argued that China has more than tripled its tire exports to the U.S. to 46 million tires between 2004 and 2008, putting more than 5,100 workers out of a job.

"Our domestic industries cannot survive unless our government enforces the trade laws designed to curb and dissuade anticompetitive practices that cause market disruptions," USW International President Leo W. Gerard said in a statement.

The union said another 3,000 workers would lose their jobs by the end of the year and is urging President Barack Obama to cap Chinese tire imports at 21 million per year.

Shanghai-based GITI Tire issued a statement Thursday saying it was "disappointed" with the decision. The company said U.S. tire makers have been scaling back their offerings in the low-cost tire segment, where Chinese tire makers now compete.

"If there is a barrier placed on tires produced in China, we believe that U.S. manufacturers will simply increase importation of tires from other countries," the company said in a statement.

The investigation into the Chinese tire makers is one of several probes into Chinese business practices. Other U.S. investigations of Chinese goods have focused on dumping of wooden bedroom furniture, honey, candles, gift boxes, industrial chemicals and fresh garlic.

The International Trade Commission ruling has no immediate repercussions, but the group is scheduled to meet again later this month to determine a recommendation to the White House on the issue.