US panel recommends more duties on Chinese tires

The US International Trade Commission has recommended imposing duties of up to 55% on low-cost Chinese tires on top of existing tariffs of less than 4%, the Wall Street Journal reported. The new duties would total 55% of the total value in the first year, 45% in the next year and 35% in the third year. The imposition of these duties will have to be approved by US President Barack Obama. China was the largest source of US tire imports last year, shipping an estimated US$1.7 billion worth of tires. Chinese tires sell for about US$50-US$60 each, about half of the price of some US brands, which some say disrupts the US market. China’s largest tire manufacturer GITI Tire called the decision “decidedly protectionist,” and defenders of tire imports said the costs of the tariffs would have to be passed on to consumers.