U.S. is “Tired” of Too Many Imported Chinese Tires

After the United Steelworkers Union brought a case before the International Trade Commission(ITC), the US federal agency is recommending tariffs be placed on imported Chinese tires, reports the Finanical Times in the U.K. The Union stated a surge of imported of Chinese tires has affected domestic tire makers, causing an estimated 7,000 lost jobs. The recommendation from the ITC is to impose a $1.7 billion tariff on Chinese tires for the next 3 years.

The President has until early Fall to decide if he will impose his tariff.

This is really the Obama administration’s first test on whether it is going to be protectionist or not,” said Chad P. Bown, an economics professor at Brandeis University and fellow at the Brookings Institution.

In 2001, the World Trade Organization created section 421 of the trade law after China joined in membership, this allows member countries to restrict Chinese imports if they decide a surge of imported products has damaged domestic businesses. This will be the first time the U.S. has filed for a tariff under this section.

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