Released a year after President Obama announced relief for domestic tire manufacturers from a flood of Chinese imports, this study takes a look at the health of American industry. The result of the White House’s trade action? Increased American production and increased American consumption.
China loses WTO appeal against U.S. tire tariffs
WTO ruled the U.S. was entitled to impose extra safeguard duties on imports of Chinese tires.
In 2009, the U.S. International Trade Commission gave the green light for an affirmative decision under Section 421 of U.S. trade law to impose restrictions on specific tire imports from China.
From 2004-2008, imports increased nearly 300 percent by value (from $453 million to $1.788 billion). Domestic production, meanwhile, declined from 218.4 million tires to 160.3 million tires.
President Obama imposed three years of relief with tariffs of 35 percent the first year, 30 percent the second, and 25 percent the third. A year later, the U.S. tire industry came roaring back.