US ANNOUNCES TARIFF ON CHINESE TIRES, CHINA PLANS TO RETALIATE ON POULTRY
News Date September 15, 2009
President Obama announced Friday that imports of Chinese tires will soon be subject to a 35 percent tariff. The tariff is in response to a surge of Chinese tires into the U.S. that caused a major decline in the domestic tire industry, ultimately resulting in the closing of several tire plants and the loss of thousands of American jobs. After a year the tariff will be reduced to 30 percent, then 25 percent in the third year.
As a countermeasure to the U.S. action, China has said it will investigate whether the U.S. has disrupted Chinese markets by importing automotive and poultry products at prices below cost, a practice known as dumping. If China determines that the U.S. has dupmed products into the Chinese market they plan to levy tariffs on U.S. imports to offset the damage. (By: Ethan Mathews, Policy Contact: Amy Mann)