US hearing on hiking Chinese tire tariffs

Watch Video

Play Video

Let's kick off the business news with the latest on a dispute over a proposed hike in tariffs on Chinese tire imports into the United States. A hearing on Friday saw arguments for and against punitive duties on tires from China.

In Washington, the Office of US Trade Representatives held a hearing on Friday looking at the proposal to impose higher duties on Chinese tires. The hearing follows a June recommendation by the US International Trade Commission for pushing up tariffs to up to 55 percent on Chinese passenger and light truck tires. A Chinese delegation comprising tire makers and industry representatives attended the hearing which saw a range of arguments for and against the case.

The United Steelworkers Union says protection is needed to safeguard the American tire industry, and stop Chinese manufactures from entering the premium tire market.

But that argument drew little support from US tire producers and distributors. They do not think that lowering imports of Chinese tires will create more American jobs. Analysts also point out that penalizing Chinese-made tires could force many tire makers to shift production bases to other countries.

China's tire exports to the US have shrunk nearly 15 percent so far this year.