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

Now that the deal, which had to clear several regulatory hurdles in multiple countries, is official, FedEx executives were able to speak a little bit more freely, albeit being somewhat guarded in regards to certain integration specifics at the same time.

As the July 1st date for complete compliance looms, shippers are seeking help to cope with the mandatory changes instituted by the International Maritime Organization (IMO) to the Safety of Life at Sea Convention (SOLAS).

As of July 1, only containers with a verified gross mass will be cleared to be loaded onto a ship under the International Maritime Organization’s Safety of Life at Sea (SOLAS) Verified Gross Mass (VGM) amendment. Shippers hoping that the implementation of the ruling will be delayed or deferred are whistling in the dark, say industry analysts.

Amid the many worrisome economic indicators kicking around of late, something along the lines of good news came about this week in the form of United States new home sales data, issued by the United States Department of Commerce this week.

In March, the SCI came in at 0.4, which FTR described as “a near neutral reading” on the heels of four months of more favorable market trends for shippers.

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA