Why the U.S. Steel Workers Continually Hit China's Tires

Many people in the industry first heard about the United States Steel Workers’ Union (USW) five years ago because it caused a sensation in the nation’s special tire protection program for American tires. At that time, many people were confused: There was no anti-dumping in the American Tire Association. What did you call a steelworkers association? Later people realized that this was actually misled by translations.

Why the U.S. Steel Workers Continually Hit China's Tires

Less than two years after the end of the tire special security case, the Federation once again launched a disaster for Chinese tire companies. On June 3, 2014, USW filed an application with the U.S. Department of Commerce and the U.S. International Trade Commission requesting the initiation of anti-dumping and countervailing investigations on passenger and light truck tire products from China. So, what kind of organization is the American Iron and Steel Workers Union? Why does it have to make frequent attacks on Chinese tyres?

Not a single trade union

At the beginning of the last century, the American steel company, which accounted for more than half of the total amount of steel in the United States, was born in Pittsburgh, Pennsylvania. With the development of society, after the steel industry gradually faded out of the city, a union organization rooted in steel workers, the US Steel Workers Union (USW), survived and successfully transformed itself.

Why the U.S. Steel Workers Continually Hit China's Tires

USW, which started in the steel industry, gradually merged with other trade union organizations to become the largest trade union in North America, but steel workers are still the main force. A large proportion of employees in the tire industry are members of this union.

According to the official website of USW, the union has consolidated union organizations in many countries and regions. Its 1.2 million members are widely distributed in the United States, Canada and the Caribbean, covering almost every industry. Of course, it also includes tens of thousands of workers who produce tires.

From this point of view, the USW is no longer a trade union organization in a single industry, and the “American Iron and Steel Workers Federation” is just a direct translation of its English acronym. Its full name is the American Iron and Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Industrial, and Service Workers International Union of Labor Unions, the U.S. General Labor Union and the Industrial Labor Organization, and the Canadian Labor Congress. From the analysis of the name, it basically covers all industrial fields, but also an international organization.

Sometimes it's about government decisions

It is understood that USW is one of the most active labor organizations in the United States. The union has a great influence on political elections and decision-making, especially in several manufacturing-centered states. According to statistics, during the presidential election five years ago, it was precisely because of the support of these union members that Obama was able to win key manufacturing states in the Democratic primary and subsequent general elections.

Some industry insiders believe that USW's application for sanctions against Chinese tires, which threaten local workers' positions, is too high-sounding and has more political goals. Because the "double reaction" is harmful to the U.S. economy and U.S. consumers. However, tires are important commodities that China has exported to the United States. Through such a proposal, the prestige and influence of the USW can be increased, and more workers can be recruited. At the same time, more companies, political parties, and media are paying attention and improving their own political status.

According to reports, in the 2009 special security case, if the US government followed the approach taken by George W. Bush, it may maintain a good Sino-U.S. trade relationship, but at the cost of offending the USW. It is likely to reject Obama's other reforms and political agenda, eventually leading to the failure of the government.

USW and China Tire Encounter

The 2009 Sino-U.S. tire special protection case is the best interpretation of the USW and Chinese tire complaints. On April 20th of that year, USW filed an application with the US International Trade Commission to initiate a special security investigation on Chinese tires for passenger cars.

In the lawsuit, he claimed that the large number of tires imported from China had harmed the interests of local tire workers; if no measures were taken, at the end of 2009, there would be 3,000 American workers who lost their jobs.

Subsequently, the U.S. government launched an investigation on April 29, made a harmful ruling on June 18, proposed a sanctions plan on June 29, held a hearing on August 7, and made a final decision on September 17 by Obama.

The case led to a sharp drop in Chinese tire exports to the United States. In 2012, the proportion of Chinese tires in the U.S. market dropped from 15% in 2010 to 8%.

However, less than two years after the special security case, Chinese tires have not recovered their vitality in the US market. USW once again resorted to “double reverse” killings and vowed to expel Chinese tires from the United States. It seems that this game is far from over.