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Brady Issues Statement Asking How China Tires Decision Has Affected U.S. Economy

September 10, 2010

Ways & Means Trade Subcommittee Ranking Member Kevin Brady (R-TX) issued the following statement today, about tomorrow being the first anniversary of the President’s decision to impose an additional tariff on tire imports from China, urging the President to review the economy-wide effects of the increased tariff.  The law allows the President to request a report from the U.S. International Trade Commission to gauge whether or not the tariff has proven effective.  

Brady said, “One year ago, the Administration imposed a tire tax on American families to satisfy a narrow group of interests and has refused to examine what the impact of this tax is on American workers, consumers, distributors, and retailers.  The evidence indicates that although imports from China have decreased, imports from other countries have taken up the slack, and U.S. production of these low-end tires has not increased.  It doesn’t seem that the tax is working, and yet it is burdening Americans.  In January, Congressman Dan Boren and I wrote to the Administration and asked for confirmation that it has a system to collect the full range of information so that the President can fairly assess the impact of the tax on all Americans and decide whether it is doing more harm than good.  But, regrettably, there is no such common-sense system in place.  Mr. President, I call on you once again to get the facts and reassess this tire tax.”

On January 21, Representatives Brady and Boren (D-OK) sent a letter to U.S. Trade Representative Ron Kirk, asking him to confirm that the Administration is monitoring comprehensively the impact of the tariffs. The full letter may be read here. Two separate analyses by the Democratic Leadership Council and the U.S. China Business Council found that the tax has not reduced overall import levels or increased U.S. production or employment.