Tuesday, September 15, 2009

U.S. to Impose Tariff on Tires from China

Washington Post (9/12, Whoriskey and Kornblut) – The tire tariff will amount to 35 percent the first year, 30 percent the second and 25 percent the third. Although a federal trade panel had recommended higher levies -- of 55, 45 and 35 percent, respectively -- the decision is considered a victory for the United Steelworkers union, which filed the trade complaint…" The President decided to remedy the clear disruption to the U.S. tire industry based on the facts and the law in this case," the White House said in a statement released Friday night.

China's Ministry of Commerce said in a statement early Saturday that the move violated WTO rules. "China strongly opposes this serious act of trade protectionism by the U.S," the ministry said, according to the Associated Press…"U.S. tire manufacturers years ago decided to move production of low end tires off-shore," said David Spooner, a lawyer representing the Chinese tire industry. "Frankly, a temporary tariff is not going to get them to change their business plan."

Wall Street Journal (9/15, Johnson) – China Seeks Talks at WTO: In pursuing talks with U.S., some say Beijing appears eager to keep the trade tensions in the framework of international law…[when explaining why] China moved to restrict US imports of chicken and auto products. Meanwhile, an official with the US Trade Representative's office on Sunday defended the US decision, saying, "Countries are entitled to actions that they think are fair and consistent with the WTO," adding that if the Chinese moves are in retaliation, "there may be a basis for the US to react."

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