U.S. tire cord makers seek exemptions to steel rod tariffs

Tire cord producers Bekaert Corp., Bridgestone Metalpha, Kiswire America and Tokusen U.S.A. Inc. have requested exemptions to the U.S.'s Section 232 steel tariffs for grade 1078 and above high-carbon wire rod.

Bekaert, Kiswire and Tokusen— all subsidiaries of non-U.S.-headquartered companies — pointed out in their submission that finished tire cord is exempted in the Section 232, setting up a scenario in which U.S. tire manufacturers will become more dependent on imported tire cord, "seriously undermining" President Trump's objectives in imposing the tariffs.

Domestic suppliers cannot meet the demand of U.S. tire manufacturers for these steel products, said Tracey L. Norberg, USTMA senior vice president and general counsel, at a May 24 Commerce hearing.

High-carbon wire rod, which is necessary to make the steel wire used in producing tire cord and bead wire, must be made in basic oxygen furnace steel works for required strength and cleanliness, the companies said, and is not available from U.S. rod mills, which use electric-arc furnaces.

Bekaert operates five North American plants, Kiswire operates two, and Tokusen operates one, jointly employing 1,700 workers, the letter to the BIS said.

Bekaert is a unit of Bekaert N.V. of Belgium; Kiswire is a subsidiary of Kiswire Ltd. of South Korea; Tokusen U.S.A. is a subsidiary of Tokusen Kogyo Ltd. of Japan.

In the submission, it's disclosed that both Bekaert and Kiswire have put on hold planned capacity expansions because of the imposition of the Section 232 tariffs.



Source: wireworld