US Slaps 35 Percent Duty on Chinese Tires

US president Barack Obama announced a new additional duty on tire imports from China, in a move perceived by local US labor groups as great and by the Chinese as yet another protectionist move made by the US government.

The new duty of 35 percent will come into effect on September 26 and will complete the existing 4 percent duty. Next year, it will go down to a total of 30 percent, while in the third year is projected to decrease to 25 percent.

"For far too long, workers across this country have been victimized by bad trade policies and government inaction. Today, President Obama made clear that he will enforce America's trade laws and stand with American workers," United Steelworkers President Leo Gerard was quoted as saying by Autonews.

"China strongly condemns this grave act of trade protectionism by the U.S.," Chinese Ministry of Commerce spokesman, Yao Jian, replied in a statement. "This step not only violates the rules of the World Trade Organization, it is also contrary to the relevant commitments that the United States government made at the G20 financial summit."

The Chinese point of view is being endorsed by, believe it or not, American tire manufacturers. Together with tire wholesalers and retailers, they warned the new duty will endanger the jobs of those involved in the industry.

"We are certainly disheartened that the president bowed to the union and disregarded the interests of thousands of other American workers and consumers," Marguerite Trossevin, counsel to the American Coalition for Free Trade in Tires told the source.