New Balance is the only athletic shoe company still producing in the U.S.  This video shows their Skowhegan, Maine factory talking about Made in the USA.

TireBusiness.com is running a poll asking “Do you agree with the ITC’s ruling in favor of the United Steelworkers’ petition seeking to impose quotas on Chinese tire imports?” 

The choices are:  (1) Yes, these imports have harmed the domestic tire industry; (2) No, the imports are an effect, not a cause, of the domestic makers pulling out of some segments; (3) think imports have hurt the domestic industry, but I don’t think trade restrictions are the answer and (4) I’m not sure.

ManufactureThis just answered the poll and selected choice #1.

##

USW President Leo Gerard and the New America Foundation’s Leo Hindery have penned a strongly worded op-ed in The Nation that argues for a strong rebuilding of U.S. manufacturing:

The current jobs crisis is in part a reflection of the misplaced priorities of previous administrations, which let America’s manufacturing sector decline vis-a-vis our services economy. As a result, manufacturing industries now represent just 11.5 percent of GDP; the number of people working in manufacturing accounts for only 8.7 percent of the jobs in the country; and we have run an average trade deficit in manufactured goods of more than $500 billion over the past five years, all of which contributed to the huge buildup of US debt in recent years.

This almost complete neglect of our manufacturing base relative to our service sector represents the height of irresponsibility, because compared with those in manufacturing, service jobs pay below median wages, do very little to help America’s balance of trade, have a much smaller multiplier effect on other parts of the economy and mostly just move incomes around the country.

In their conclusion, Gerard and Hindery offer a number of constructive proposals, including significant revisions to U.S. trade policy and ongoing support for Buy America policies.

##

Several weeks ago, ManufactureThis reported on the ongoing action by the U.S. International Trade Commission on a request by United Steelworkers in early 2009 requesting that the Administration cut the number of Chinese tire imports.  
 
As we reported then, the petition – and the ITC’s response – was based on both the market disruptions that occurred because of China’s unfair (and often illegal) trade practices as it relates to its tires, as well as safety problems that caused two deaths, several serious injuries and a number of tire separation incidents in the U.S. 
 
The original petition requested that the government only allow 21 million tires from China to be imported into the U.S. in the coming year, which would bring imports back to less half the 46 million units imported in 2008. 
 
Earlier this month, the ITC ruled in favor of the petition, finding that as a result of its cheating both economically and safety-wise, China’s tires were indeed a source of concern both to U.S. manufacturers and consumers. 
 
As AAM’s Steven Capozzola noted, yesterday the ITC took further action by recommending to the White House that three years of tariffs be applied to imports of Chinese tires.  Its suggested remedy would impose tariffs of 55%, 45% and 35% respectively over a three-year period and would have the same affect on decreasing the number of imports as would quotas – in fact, some analysts believe that the tariffs may even have a greater impact. 
 
These remedies will be formally presented to President Obama on July 9, with White House action to accept or reject them due by September 17th.  The ITC ruling also left the door open for either U.S. Trade Representative Ron Kirk or President Obama to impose additional tariffs or import restrictions.

 
So lets recap on Chinese tire manufacturers - they cheat, their tires blow up, and if history tells us anything, they are not likely to clean up their act anytime soon.  With Americans headed to their cars for vacation purposes over the next few months, they want to be sure that their spouses, their children, and Fido and Fluffy are being carried to the beach or into the woods on tires that will get them there safely. 
 
The jobs of U.S. manufacturers and their employees - who play by the rules and obey trade and safety rules that China ignores – must be protected.
 
Should President Obama accept the ITC’s recommendations?  Should the U.S. impose corrective tariffs on Chinese tires?  Um, duh. 

##

Rapid City, South Dakota: 275 employees will lose their jobs as the electronics manufacturer, Sammina-SCI, closes its plant.

Nashville, Tennessee: La Vergne’s Quality Industries, a maker of truck parts, has shed 111 jobs from its work force.

Nashville, Tennessee: Informatix Inc., a data imaging company, is closing leaving 48 people without work.

##

G.M. is headed to the bankruptcy court today to set the government approved restructuring plan in motion.

The outlook for the global economy improves and the dollar falls.  As the experts become more optimistic about the growth outlook for 2010, investors are starting to shift to higher-yield assets and once again direct the flows of capital into the emerging economies, judging that the risk is subsiding.

The prognosis for the U.S. housing market is not that rosy, however.  Even though the wave of foreclosures from the bad subprime deals has subsided a new wave of foreclosures brought on by high and increasing unemployment is forming.

Steelworkers descend on Steel Pier.

“The District 10 United Steelworkers conference took place last week in Atlantic City, New Jersey, once the home to

Steel Pier and it’s famous diving horse.  Speakers included the Alliance for American Manufacturing’s Executive Director Scott Paul and the USW liaison to AAM, Ike Gittlen.  The two gave presentations that included discussion of China trade, the climate debate, and manufacturing jobs and infrastructure investment.  Other notable speakers included; Richard Trumpka (AFL-CIO Secretary Treasurer), Fred Redmond (USW International Vice President), Charlie Kerrigan (National Labor Committee Director), and Congressman Joe Sestak.”

##

This afternoon the U.S. International Trade Commission (ITC) voted in support of recommending that President Obama impose tariffs for three years on imports of Chinese tires that have been found to cause market disruption to the domestic tire industry.  The trade commission recommended the President impose tariffs of 55 percent ad valorem (the value of the item) in the first year, 45 percent in the second year and 35 percent in the third year, in addition to any other applicable tariffs.

##

On the subject of House legislation to address carbon emissions, the President said on Sunday, “At a time when the economy worldwide is still deep in recession and we’ve seen a significant drop in global trade, I think we have to be very careful about sending any protectionist signals out there…I think there may be other ways of doing it than with a tariff approach.”

What the president was referring to was a provision in the bill that would impose “border adjustment” fees on countries that do not move to jointly curb their carbon emissions.

To call such a measure “protectionist” is incorrect and misguided.  China is the world’s leading industrial carbon emitter, and is also well-documented as the leading polluter.  Placing new and onerous restrictions on U.S. manufacturers, who already adhere to strict emissions controls and environmental regulations, while doing nothing about China’s massive pollution, makes no sense.  In fact, it will only ensure that more production moves to China, which means more carbon emissions, which will negate the desired effects of any U.S. colimate bill. 

ManufactureThis wonders who has advised the president on this issue, and how they are missing the overarching common sense view?