WTO Upholds U.S. Duties on Chinese Tires
December 15, 2010
On December 13, 2010 the World Trade Organization (WTO) ruled in favor of the United States, rejecting China’s challenge to the Obama Administration’s added tariff on consumer tires imported from China. A tiered system of increased tariffs on certain passenger vehicle tires and light truck tires was announced on September 11, 2009 following a safeguard investigation under Section 421 of the Trade Act of 1974. The added tariff was enacted at 35% on September 26, 2009 and dropped to 30% a year later. It is scheduled to be reduced to 25% on September 26, 2011. The WTO’s dispute panel determined that the United States did not fail to comply with its WTO obligations by imposing the transitional safeguard measures.