U.S. President Barack Obama decided on September 11th to impose a three-year punitive tariff on all cars and light truck tires imported from China.
White House spokesperson Robert Gibbs said that the punitive tariff rates on tire imports from China are 35% in the first year, 30% in the second year, and 25% in the third year.
Prior to this, the US International Trade Commission proposed to impose a three-year punitive tariff on Chinese-made tires, with a margin of 55%, 45%, and 35% respectively.
News background: On April 20, 2009, the United Steelworkers’ Federation applied to the US International Trade Commission for an investigation into the tires of Chinese-made passenger cars on the grounds that China’s tire exports to the United States have disrupted the US market. On June 29, the U.S. Trade Commission proposed to add 55%, 45%, and 35% to the China-used passenger car and Light Truck tires for three consecutive years based on the current import tariff (3.4%-4.0%). Special ad valorem tariffs.
This case is the first special security investigation initiated by the Obama administration of China. According to Chinese statistics, in 2008 China’s tire exports to the United States amounted to approximately US$2.2 billion. The case was widely opposed by the Chinese and American industry. Officials of the Ministry of Commerce of the People's Republic of China have repeatedly negotiated with the relevant U.S. authorities in this case. Earlier, the Bush administration of the United States had initiated six special safeguard investigations against China and none of them had taken special safeguard measures.
At present, China's annual export volume of tires accounts for more than 40% of total production. If we reduce the output of half of American tires, it means that China will have 12% of the remaining tire capacity. In addition, according to the WTO rules, if Obama approves the special security sanctions against China, the relevant countries can directly invoke the US sanctions program.
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