China's producers urge US to avoid tariffs

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US President Barack Obama will decide next month whether to impose special tariffs on Chinese tire imports. A delegation from the China Rubber Industry Association has arrived in the United States, saying that the Chinese side firmly opposes such measures.

The US International Trade Commission proposal recommends three years of duties on Chinese tires. The tariff would be 55 percent on the value of the tires in the first year, 45 percent in the second year and 35 percent in the third year.

The delegation says China's tire exports to the US market are mainly replacement tires, while US domestic companies are focusing on original tires, so there's no direct competitiveness between the two sides.

It says the curb on imports from China would not solve the problems in the US auto industry. Instead, the restriction would hurt American workers, traders and consumers.

The US Steelworkers Union filed a petition in April this year for import relief and won a favorable ruling from the US International Trade Commission.

The Commission voted in June that an increase in Chinese tire imports was causing market disruption in the US industry. It submitted its report to President Obama and the US Trade Representative Ron Kirk last month.

A hearing will be held on the proposal on Friday before Obama makes a final decision next month. If passed, the measurers could cost 100,000 Chinese tire workers their jobs and around 1,100,000,000 US dollars trade losses.