Oregon Public Broadcasting

Les Schwab Tire Centers reacted negatively to a trade panel recommendation for higher tariffs on Chinese tire imports.  Much of the company’s business is based on sales of less expensive imported tires.

Central Oregon correspondent Ethan Lindsey reports.

The U.S. International Trade Commission, by a 4-to-2 vote, said that new tariffs could help the U.S. tire manufacturing industry.

Bend-based Les Schwab released a statement that said the only thing higher tariffs will mean is higher prices for U.S. consumers.

Labor unions hailed the decision as a win for American tire and rubber workers.

Duane Lathan is an international trade lawyer in Washington.

He represents the Singapore-based tire company Giti, an ally of Les Schwab in this case.

Lathan says the final decision is now up to President Obama – whether to accept or reject the tariffs.

Duane Lathan: “Everybody is watching this first case here under President Obama’s watch. A lot is at stake here – a lot at stake for the President, for the country, and no doubt the Chinese are watching this closely as well.”

Trade officials say President Bush consistently rejected tariffs such as this – so this is an important test case for the new administration.