Subscribe to our free, weekly email newsletter!


Sanctions against Chinese tire imports may disrupt supply chain

By Patrick Burnson, Executive Editor
December 15, 2010

The World Trade Organization ruled this week that the United States acted within its rights when it raised import taxes on Chinese tires by as much as 35 percent. Not all supply chain experts here approve.

Chief among those who voiced objections to the WTO ruling is Rosemary Coates, president of Blue Silk Consulting and author of 42 Rules for Sourcing and Manufacturing in China.

“Applying sanctions on tires to give the appearance of protecting U.S. consumer safety or protecting jobs is a false approach,” she told LM in an interview.  “Most tire manufacturing (a very dirty industry) is already in China including the preponderance of manufacturing for Goodyear and Cooper Tire.”

She also pointed out that both Goodyear and Cooper are against the trade sanctions.

“So applying an import tariff in the U.S. hurts these U.S. companies as well as forces consumers to pay more…a double whammy.”

Coates added that U.S. consumers have come to expect downward pressure on prices and are not willing to pay more for US-made goods of equal quality. Hiding the real issue under the umbrella of safety is another false approach, she said.

“The Chinese manufacturers are making tires to specs determined by engineers in the U.S. and Europe.  If the same specs were followed in a U.S. manufacturing plant, the results would most likely be the same,” said Coates.  “The safety theme is a decoy issue to raise the emotional value of the discussion.”

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Disruptions at West Coast ports, which were resolved at the end of February, may have distorted the numbers

Growth firmly remains in the cards for both the manufacturing and non-manufacturing sectors in 2015. That was the main takeaway from the December 2014 Semiannual Economic Forecast from the Institute for Supply Management (ISM), which, in many ways, picked up where its companion Spring 2014 report published last April left off.

First quarter revenue of $1.776 billion was down 4.8 percent annually but up 4.6 percent in constant currency. And adjusted EBITDA at $51 million saw an 18.6 percent annual gain, with a 23.3 percent increase in constant currency.

Heading into 2015, the intermodal sector was faced with the same challenges it had exiting 2014, namely the West Coast port labor disruption and harsh winter weather. But even with these obstacles volumes still managed to show overall growth on an annual basis, according to the most recent edition of the Intermodal Market Trends & Statistics Report from the Intermodal Association of North America (IANA).

Forget cost cutting. Innovation and sustainability are the most important factors in business today. The companies that get it right can still win in a flat economy, says ISM CEO Tom Derry.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA