U.S. Tire Tariff May Affect U.S. Poultry Exports

U.S. Tire Tariff May Affect U.S. Poultry Exports

China launches investigation on chicken imports.

The Chinese government's Ministry of Commerce says China has filed a formal complaint to the World Trade Organization and has asked for talks with the United States over President Obama's imposition of a tariff on the import of tires from China. A Ministry spokesperson says the U.S. move is an abuse of trade remedy measures. The U.S. decision takes effect on Sept. 26 and car and light truck tires imported from China will have punitive tariffs of 35%, 30% and 25% respectively during the next three years.

 

China's commerce ministry has announced it would investigate certain imported automotive products and certain imported chicken meat products originating from the United States to determine if they were being subsidized or dumped below cost in the Chinese market. A finding of subsidies or dumping would allow China to impose tariffs on these imports.

 

The ministry did not mention the tire dispute in its announcement on investigating certain imported chicken meat products originating from the United States. The ministry preferred to portray the investigations as based on the law and on World Trade Organization rules. The fallout is no surprise to food and agricultural groups, who warned against possible retaliation in a recent letter to the President.

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