Global Processing

WTO Rules US Tariffs on Chinese Tire Imports Legal

December 13, 2010
Bloomberg reports, World Trade Organization judges rejected China’s complaint that U.S. tariffs on Chinese car and light-truck tires violate global trade rules. President Barack Obama announced the three-year duties on $1.8 billion of tires from China in September 2009, acting on a complaint by the United Steelworkers union, which represents 15,000 employees at 13 tire plants in the U.S. The union said Chinese tire exports to the U.S. tripled from 2001 to 2004 to 41 million and called for a cap on annual imports of 21 million. The tariffs are calculated as a percentage of tires’ value. Obama imposed a levy of 35 percent in the first year, 30 percent in the second year and 25 percent in the third year, on top of the 4 percent duty applied to all passenger-vehicle and light-truck tires imported into the U.S. market.