USA v China – it’s a tyre issue

In 2009 President Obama imposed import duties of up to 35% on Chinese-made tyres. The Chinese didn’t like this and saw it as protectionist and estimated that it would cost its tyre industry US$1bn, and cause 100,000 Chinese redundancies. The World Trade Organization (WTO) has ruled that the US was entitled to impose extra duties on Chinese tyre imports as they had tripled in volume over four years. They also stated that this reduced US tyre production by more than a quarter over the same period, leading to 14% of workers in the industry losing their jobs.

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