USTMA Urges Exemption for Steel Used in Tire Manufacturing  

WASHINGTON, D.C., November 16, 2017 -- The U.S. Tire Manufacturers Association (USTMA) today urged the U.S. International Trade Commission (ITC) not to impose duties on the high-quality steel used in tire manufacturing.  

The ITC is pursuing possible sanctions on imported steel wire rod from Belarus, Italy, Korea, Russia, South Africa, Spain, Turkey, Ukraine, the United Arab Emirates, and the United Kingdom.

USTMA is requesting that Grade 1080 and higher steel wire rod that is used in the production of tire cord and bead wire be excluded from the ITC investigation since domestic suppliers cannot meet volume and quality needs for this critical tire safety component.

“Tire manufacturing is vital to the U.S. economy,” said Tracey Norberg, USTMA senior vice president and general counsel. “Tires manufactured by USTMA members safely transport millions of Americans and millions of tons of goods each day throughout the United States.

An economic impact study commissioned by USTMA found that the tire manufacturing industry supports 737,000 U.S. jobs and nearly $150 billion in total economic output. USTMA members operate 56 tire-related manufacturing facilities in 18 states.

Tire manufacturers use steel wire in a tire’s steel belts, providing strength, high load-carrying capacity, puncture resistance and durability, and in the bead, which holds the tire to the rim.

The steel wire rod used to manufacture the high tensile tire cord and bead wire consumed in U.S. tire manufacturing plants must meet stringent performance and quality requirements.

Domestic steel mills use a production process that is unable to produce Grade 1080 and higher steel wire rod that is used in the production of tire cord and bead wire rod of consistent quality and in volumes necessary to make today’s high performance tires. Due to these quality and supply limitations, U.S. tire manufacturers must rely on wire made from steel wire rod sourced from foreign suppliers.

In 2016, the U.S. tire manufacturing industry consumed approximately 429,262 metric tonnes of tire cord and bead wire, which equates to an average of four pounds of steel in a passenger/light truck tire and an average of 20 pounds of steel in a commercial truck/bus tire.

The total volume of steel consumed by the tire industry represents only about one percent of U.S. crude steel production and about 0.03% of global steel production.  

Potential outcomes of this investigation could have a significant negative impact on the U.S. tire manufacturing industry and the U.S. economy without affording any benefits to a domestic industry, which cannot produce tire quality rod.

“Any such trade constraint could potentially have a cascading negative impact on U.S. commerce since consumers and businesses depend on a reliable supply of tires to safely move goods and people throughout the country,” Norberg said.

Download the testimony here (PDF).

Photo: Tracey Norberg, USTMA senior vice president and general counsel, testified against the imposition of duties on steel used in tire manufacturing before the U.S. International Trade Commission (ITC).

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The U.S. Tire Manufacturers Association is the national trade association for tire manufacturers that produce tires in the U.S. For more information visit www.USTires.org and follow us on Twitter @USTireAssoc.