The additional duty, which takes effect Sept. 26 and complements an existing 4 percent duty, will be set at 35 percent ad valorem for the first year, followed by 30 percent the second year and 25 percent the third year.
When China joined the World Trade Organization, the country agreed to allow WTO members to impose duties or quotas to prevent or remedy 'market disruptions' caused by increased Chinese imports. WTO members retain this right through Dec. 11, 2013. In the United States, these China-specific import restrictions are known as Section 421 safeguards.
Importer groups expressed disappointment with the president's decision to impose the tariffs on Chinese tire imports.
'These tariffs are unwarranted,' said David Spooner of Squire, Sanders & Dempsey, counsel for the Chinese tire industry, in a statement. 'It's troubling that the administration would invoke an import surge safeguard over the objections of U.S. industry and in response to falling imports. Not a single U.S. tire company supports these taxes.'
Squire, Sanders represents the China Rubber Industry Association and the China Chamber of Commerce for Metals, the trade associations of China's tire producers.
