Manufacturing News

China reacts quickly to US tyre tariff

US president Obama’s recent move to impose tariffs of up to 35% on imported Chinese tyres has angered China, who has now hauled the US to the World Trade Organization over what it alleges were unfair tariffs imposed by Washington.

A Chinese Commerce ministry spokesman said the US has adopted protective measures against Chinese tyres shipped to the US, and is a violation of WTO rules.

Amid warnings that a surge in Chinese-made tyres had cost more than 5,000 jobs in the US, President Obama last week imposed punitive duties of 35% on the Chinese imports, igniting the first trade spat of his presidency just weeks before hosting his Chinese counterpart Hu Jintao.

The government-run U.S. International Trade Commission (USITC) had urged duties of up to 55% after union leaders claimed imports of cheap Chinese tyres had tripled over the last five years.

However, to minimize Chinese anger, Obama had opted for a lower figure, whereby tariffs, already at 4%, will soar by an additional 35% in the first year, 30% in the second and 25% in the third.

Beijing has reacted strongly against the move, saying over the weekend that it would in turn investigate possible unfair practices in US exports of car parts and chicken meat.

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