Saturday, September 12, 2009

Obama Administration Imposes Tariffs On Chinese Tires

President Barack Obama has signed an order to impose the special punitive tariffs for three years. The stiff tariffs on imports of Chinese-made tires were needed after a surge of imports disrupted the U.S. domestic market. U.S. imports of Chinese tires have risen from 14.6 million in 2004 to 46 million last year, accounting for about one-sixth of the U.S. market. Four U.S. tire plants have closed in the past two years, and more than 5,000 workers have lost their jobs.

The action is the first major trade enforcement action of his presidency and the first time the U.S. government has imposed special "safeguard" provisions to protect a U.S. industry from Chinese competition. In the first year, the tariff will be 35%, falling to 30% in the second year and 25% in the third year. The tariff would be on top of the current 4% tariff. The tariffs will take effect in 15 days. (Market Watch, 9/11/09)

No comments: