April 20 (Bloomberg) -- The United Steelworkers union asked President Barack Obama to cap automobile-tire imports from China, saying the lower-priced goods are costing U.S. jobs.

The union, which represents tire-factory workers, filed a petition with the U.S. International Trade Commission today to cut imports of automobile tires from China by more than half to 21 million, the level in 2005. China sent 46 million tires to the U.S. in 2008, valued at $1.7 billion, the union said.

“The Chinese import surge has been a significant factor that has led to the idling of factories,” Leo Gerard, president of the United Steelworkers, told reporters. The union represents about 15,000 tire workers at 13 plants including those owned by Bridgestone Corp. and Goodyear Tire & Rubber Co.

U.S. makers of steel, textiles and other products have blamed last year’s record $266 billion trade deficit with China on the Asian nation’s subsidies, currency value and import curbs. The petition filed today will be the first test of Obama’s campaign pledge to increase trade enforcement.

“Obama will be hard-pressed to reject this petition” given that pledge, said David Spooner, who led the Import Administration office at the Commerce Department under George W. Bush.

“And if he says yes to this one, it will surely lead to a flood of additional” complaints, said Spooner, who is now a counsel at the law firm of Squire Sanders & Dempsey LLP in Washington. “There is a lot of pent-up demand.”

Socks and Tires

Former President George W. Bush, during his eight years in office, turned down every request for general safeguards, which calls for the government to impose import quotas or tariffs to protect domestic industries from foreign competition deemed unfair. Bush did impose separate textile specific caps on socks and other products before negotiating across-the-board apparel quotas with the Chinese.

Tiremakers are already facing a drop in demand as the global recession cuts into auto sales and delays purchases of replacement tires. Tiremakers may report a 6.8 percent sales slump in 2009, according to the government-funded International Rubber Study Group in Singapore.

U.S. auto sales plunged 37 percent in March, and the annual rate fell to the lowest in more than 25 years in February, according to Autodata Corp. U.S. vehicle-miles traveled fell by 7 billion, or 3.1 percent, in January from a year earlier, the Federal Highway Administration said.

Next Steps

Akron, Ohio-based Goodyear fell $1.17, or about 11 percent, to $9.04 today in New York Stock Exchange composite trading. Findlay, Ohio-based Cooper Tire & Rubber Co. dropped 73 cents, or 10 percent, to $6.60. Bridgestone, the world’s largest tiremaker by sales, is based in Tokyo.

The steelworkers are asking for three years of quotas on tire imports from China, with the quota lifted 5 percent each year.

The International Trade Commission must now make a determination in 60 days if U.S. companies are being hurt by tire imports from China and then would have to recommend to Obama a remedy. The president has the final decision over whether to take action or disregard the commission’s recommendation, and that will be due in September.

“The destruction of our domestic market is so devastating and sudden, that the administration has to support” the petition, Gerard said. “If they don’t support that outcome they will be telling the Chinese that all of our auto supply base is up for grabs.”

To contact the reporter on this story: Mark Drajem in Washington at mdrajem@bloomberg.net

Last Updated: April 20, 2009 17:17 EDT