Analysis: U.S. tariffs on Chinese tires cast protectionism shadow over world economy

WASHINGTON, Sept. 11 (Xinhua) -- The widely watched China tire case was concluded on Friday when U.S. President Barack Obama made a ruling to impose punitive tariffs on all car and light truck tires imported from China.

Analysts say the ruling may cast shadow of protectionism over the already fragile world economy.

CONTROVERSIAL RESOLUTION

This ruling came at a time when the U.S. economy is at an uncertain turning point from the worst recession since World War II.

The case is widely seen as a test of conflicting pressures on Obama to protect jobs in the United States and to promote free trade around the world.

The powerful U.S. Steelworkers Union representing workers at major tire manufacturers in the country filed a petition against China in April for import relief and won a favorable ruling from the U.S. International Trade Commission (ITC).

The panel recommended Obama impose a 55 percent tariff on the Chinese tire imports, which would be reduced to 45 percent in the second year and 35 percent in the third before being removed.

The steelworkers asked for protection under Section 421 of the U.S. trade law, which requires petitioners to show that imports from China have disrupted the U.S. market.