Blame it on the customary deluge of Chinese imports all over, but some countries adversely feel the effect of the surfeit of everything ‘made in China.’ In July this year, ‘US Steelworkers asked President Obama to limit the amount of Chinese tires being imported into the country.’ The union had been reeling under the weight of ‘the sheer volume of Chinese tires that was making it very difficult to compete for domestic manufacturers.’ It was a situation that was particularly difficult especially in a time of recession.
‘Chinese manufacturers had nearly tripled exports between 2004 and 2008, a glut which caused plant closures and the loss of nearly 5,100 domestic jobs. These “anticompetitive practices” caused enough market disruption to enforce trade laws designed to even the playing field.’ Thus, the US International Trade Commission ruled against Chinese tire exporters, disappointing them in the process. The new 5 percent quota is designed to return Chinese tire imports to their 2005 level.
US President Obama also ordered the imposition of a 35 percent tariff on Chinese-made tires. This angered China which, in turn, threatened to impose its own tariffs on American auto products and chicken meat.
The impending trade war between the US and China is feared to have global repercussions. Unfortunately, the delicate issue was not discussed, as it should have been, during the recent G20 summit.
Via International Herald Tribune
