S.C. Gov. Nikki Haley came to the defense of Singaporean manufacturer Giti Tire by sending a letter to the U.S. Commerce Department, saying newly imposed import tariffs will hurt the company’s competitive advantage.
Giti Tire – which manufactures and exports tires to the U.S. from China – will break ground next year for an 1.8 million-square-foot facility in Chester County with a $560 million investment that would create 1,700 jobs.
“Giti’s investment in South Carolina is being driven by growing demand in the United States,” wrote Haley in a letter to U.S. Department of Commerce Assistant Secretary for Enforcement and Compliance Paul Piquado. “If this error is not corrected quickly, it will hurt Giti’s competitive position with their extremely cost-sensitive domestic partner base.”
The U.S. Department of Commerce made a preliminary decision in late November to impose a countervailing – antidumping – duty of 17.69 percent on Giti for certain passenger vehicle and light truck tires produced in China, in addition to existing duties.
Giti Tire supplies passenger and light truck tires for Wal-Mart, a cost-sensitive retailer that rolled out a $50 billion per year campaign to source domestically manufactured goods.
Giti Tire responded by saying the calculation for the duty hike was in error, stating that the “preliminary duties do not reflect [the company’s] actual circumstance,” according to a news release that reiterated Giti’s planned investment in Chester County. “The company asserts this demonstrates a sustained and significant commitment to the U.S., with no intention to harm the tire industry in the United States.”
“I urge Commerce to quickly resolve this issue before it inequitably affects Giti’s business as they build their new facility in our state,” wrote Haley.
Giti Tire is not the only foreign tire manufacturer to be affected by the department’s decision, but it is the only company affected in the state, said representatives from Haley’s office. Giti and the U.S. Department of Commerce are currently working to address the issue.
