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

The value of exports from America’s Foreign-Trade Zones increased by 13.7 percent in 2013, to a record-high 79.5 billion in merchandise exported, according to figures released by the U.S. Foreign-Trade Zones Board in its Annual Report to Congress.

While summer may be nearing its end, the climate in the manufacturing sector remains very warm, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management.

When publicly-traded Class I freight railroad and intermodal service providers issued second quarter earnings results earlier this summer, the topic of less than ideal service on the rails was a common theme within the earnings releases and question and answer sessions with top management at those companies.

Supply chain security provider Freightwatch International has released its semi-annual report on cargo theft in the Asia Pacific region for the first half of 2014, which contains some heartening news for U.S. shippers reliant on trucking, warehousing and retail.

FedEx Ground, a subsidiary of FedEx Corporation, reports today that a decision by a three-judge panel of the United States Court of Appeals for the Ninth Circuit reversed previous rulings by the District Court for the Northern District of Indiana in three class action cases involving mostly former independent contractors for FedEx Ground

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA