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post #1 of 1 (permalink) Old 09-15-2009, 10:49 AM Thread Starter
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China challenges U.S. tire tariffs

China challenges U.S. tire tariffs

Posted Tuesday, Sep 15, 2009, 11:14 am in Employee News

President Barack Obama’s decision to impose heavy tariffs on Chinese-made tires may prompt China to retaliate against U.S. auto and poultry exports, the Detroit News said.

China took its case to the World Trade Organization (WTO) Monday, after Obama ordered additional U.S. tariffs on Chinese tires for three years, including 35 percent in the first year, according to the story. The increases come on top of the current 4 percent tariff.

Besides challenging the tire tariffs before the WTO, the Chinese government said it would perform its own investigation to determine if the United States is improperly selling auto parts and poultry in China at unfairly low prices and with unfair government subsidies. That process that could trigger Chinese tariffs on these products, the paper said.

On Friday, Obama announced duties of 35 percent on $1.8 billion worth of automobile tires from China, acting on a petition by the United Steelworkers union, which complained that more than 5,000 U.S. jobs had been lost because of cheap Chinese tire imports.

According to the story, Chinese retaliation could hurt U.S. auto companies, which last year agreed to export more than $2 billion in vehicles and auto parts to China. (The Detroit News)


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