News reports from Geneva say that the World Trade Organization (WTO) will now launch a formal investigation into the Obama Administration’s imposition of a three-year added tariff on imported China-made consumer tires.
The first meeting in the investigation is supposed to occur Jan. 19. Reports say that it could take as long as a year for the case to be resolved.
The U.S. was able to deflect China’s original investigation request last month, but can no longer delay the investigation, which will evaluate whether the U.S. tariffs violate WTO trade rules.
Last September, the Obama Administration ordered a three-year tiered additional tariff – 35 percent for the first year, 30 percent the second and 25 percent for the third – supposedly to protect American tire jobs. The tariff, which kicked in on Sept. 26, has left numerous U.S. tire marketers scrambling for supply but has not delivered any new tire production jobs.
Even before the tariff started, China called the move an act of protectionism and called for the WTO to investigate. (Tire Review)
