The US plans to impose high tariffs on the import of cheap Chinese tyres.
Within the next 15 days, the US would slap a 35 per cent import tariff in the first year, which would decline to 30 per cent in the second and 25 per cent in the third, on passenger vehicle and light-truck tyres from China.
The decision taken yesterday to hike import duties on Chinese made car and light truck tyres has evoked a sharp response from Beijing, which has termed the US move as protectionism, violating the World Trade Organisation rules and said that it reserves the right to react.
The Obama administration decided to act after the US International Trade Commission (USITC) ruled that the rise of Chinese tyres into the US market had affected US tyre manufacturers, forcing many to fold up, leading to thousands of job losses.
However, the duty is 20 per cent lower than the 55 per cent for the first year, 45 per cent in the second year, and 35 per cent in the third, as proposed by USITC.
However, analysts say that the 35 per cent punitive tariffs are still high enough to keep most Chinese tyres out of the domestic market.