Saturday, September 12, 2009
In an update to earlier postings on this blog, the Obama Administration was apparently persuaded by the United Steelworkers Union to impose tariffs on Chinese tires. The government invoked a "safeguard" provision in the World Trade Organization agreements in response to a surge in Chinese tire imports that were allegedly harming the US tire industry. The U.S. government announced Friday that tariffs in the amount of 35% will be imposed during the first year, 30% during the second year, and 25% during the third year. These tariff levels are significantly lower than those recommended by the U.S. International Trade Commission, which had recommended tariffs as high as 55%, but are still high enough to have an impact on the market.