A World Trade Organization (WTO) dispute panel has rejected China’s challenge of punitive duties imposed by the United States on passenger and light-truck tires. The WTO decision is scheduled to be released in mid-December. President Obama directed the U.S. government to impose tariffs on imported tires from China for three years, beginning September 26, 2009.
The president responded to a finding by the U.S. International Trade Commission that increased imports of Chinese-made tires had caused major job losses and plant closures in the United States. The tariff levels are 35% for the first year, 30% the next and 25% in the final year, in addition to the normal 4% duty applied to these products. The president may review the effects of the tariffs and end or reduce the tariffs sooner, if deemed appropriate. For additional information, contact Stuart Gosswein at stuartg@sema.org.