From the Wall Street Journal:
- The U.S. took a step toward imposing tariffs on Chinese-made tires*
- On Monday the U.S. Commerce Department issued a preliminary finding that typical Chinese-made tires for passenger cars and light trucks were unfairly subsidized and should be subject to punitive tariffs ranging from 17.7% to 81.3%, depending on the manufacturer
- A Chinese unit of U.S.-based Cooper Tire & Rubber Co. , Cooper Kunshan Tire Co. Ltd., would face a 12.5% duty on tire shipments into the U.S. if the preliminary decision is confirmed next year.
More at the article, which may be gated: U.S. Moves to Impose Tariffs on Chinese Tires
Commerce Department Says Tires Are Unfairly Subsidized
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In a world that is making more and more steps to free trade (two forward, one back it often seems) having an export ‘unfairly subsidized’ is a no-no ….
Those who suggest central bank easing is part of ‘currency wars’ to make an entire country’s exports ‘subsidized’ might want to make their case to the US Commerce Department. It might be an uphill battle, though, the US Treasury’s semi annual Currency Report from mid-October concluded that no major US trading partner has manipulated its exchange rate (cough).
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Yes, I know, I spell it tyres too. But it’s a US report so I am taking a deep breath and just letting it go.
