Industry News
U.S. to Impose Tariffs on Tires from China in Obama Administration's First 421 Safeguard Investigation
TweetSeptember 14, 2009
President Obama announced Friday that the U.S. will impose a three-year tariff on consumer tires imported from China beginning September 26 in connection with the U.S. International Trade Commission’s (ITC) 421 Safeguards investigation. During its investigation, the ITC determined that a surge of Chinese-made tires imported to the
The controversial decision, which was immediately criticized by Chinese officials, fulfills the President’s campaign promise to better use
Nevertheless, a representative from the Chinese rubber industry estimated that the tariff would cost its industry $1 billion in exports and China’s Ministry of Commerce announced over the weekend that it would refer the U.S.’ decision to the World Trade Organization (WTO).
For the
While the ITC made affirmative injury determinations under the previous administration, few petitions were pursued because President Bush declined to provide import relief for the domestic industry citing “national economic interest.” But given President Obama’s political affiliation with labor unions and strong Congressional support for the 421 Safeguard provision, it is likely that more petitions will be filed before the provision expires in 2013.