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US tire duties protectionist, say experts

2009-07-08 11:35 BJT

US President Barack Obama should not approve the proposed tariff remedy plan on Chinese tires, as it is an unfair and unreasonable consideration, Chinese officials and experts said.

The Ministry of Commerce said last Friday on its website that the Chinese government "strongly opposes" the US' proposed limitation on Chinese tire imports, as such a move is a sign of trade protectionism.

"China is highly concerned about the proposed duties recommended by the US International Trade Commission (ITC), and will urge the US government to give up the proposed impost," said an unnamed official with the Bureau of Fair Trade for Imports and Exports under the ministry.

In April, the United Steelworkers, a union that represents some American tire workers, filed a petition with the US government accusing Chinese tire manufacturers of dumping tires in the US market. This, they claimed, weakened the US tire industry and led to job losses.

The Union has also urged the US government to limit the numbers of tires it imports from China.

Last week, the ITC urged President Obama to impose an additional tariff on imports of certain passenger vehicle and light-duty truck tires from China for three years, 55 percent ad valorem in the first year, 45 percent in the second and 35 percent in the third year.

The US president has to make a final decision in this regard by mid-September.

Over the past four years, the number of Chinese tires exported to the US has tripled and Chinese manufacturers' market share in the US market rose from 5 to 17 percent.