wiredInUSA May 2018

The tire cord producers Bekaert Corp, Bridgestone Metalpha, Kiswire America and Tokusen USA have requested exemptions to the US’s section 232 steel tariffs for grade 1078 and above high-carbon wire rod. Bekaert, Kiswire and Tokusen, subsidiaries of non-US headquartered companies, said in their submission that finished tire cord is exempted in section 232, creating a scenario where US 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 US tire manufacturers for these steel products, said Tracey L Norberg, USTMA senior vice president and general counsel. High-carbon wire rod, which is necessary to make the steel wire used to produce tire cord andbeadwire,must bemade inbasicoxygen furnace steel works for required strength and cleanliness, and is not available from US rod mills that use electric-arc furnaces. Bekaert operates five North American plants, Kiswire operates two, and Tokusen operates one, jointly employing 1,700 workers. Bekaert is a unit of Bekaert NV of Belgium; Kiswire is a subsidiary of Kiswire Ltd of South Korea; and Tokusen USA is a subsidiary of Tokusen Kogyo Ltd of Japan. Both Bekaert and Kiswire have put planned capacity expansions on hold, due to the imposition of the section 232 tariffs.

Tire cord tariff request

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wiredInUSA - May 2018