ITC Pushing Duty Increase, Not Quotas, in China Case
In a somewhat unexpected change in direction the US International Trade Commission will recommend a series of duty increases on Chinese-produced passenger and light truck/SUV tyres exported to the US. Monday’s decision, which is being forwarded to President Obama for his consideration, would place a three-tiered additional duty on the tyres based on their value – 55 per cent in the first year, 45 per cent in the second year, and 35 per cent in the third year. The fees would presumably make the retail cost of Chinese tyres more expensive in the US.
The duty plan was not sought by the United Steelworkers, which petitioned the government for a rollback in the number of consumer tyres imported from China. On June 18, the ITC ruled in favor of the USW by a 4-2 vote. That same 4-2 majority made the duty recommendation. In addition to the duty, the ITC recommends that the President direct the US Department of Labor and the U.S. Department of Commerce to provide expedited consideration of Trade Adjustment Assistance for firms and/or workers that are affected by the imported tyres. (Tire Review/Akron)