U.S. tariffs on Chinese tires spark concerns over protectionism

BEIJING, Sept. 17 (Xinhua) -- U.S. President Barack Obama's decision last weekend to impose punitive tariffs on tires imported from China has triggered concerns about the rise of protectionism in the lead-up to the Pittsburgh G20 meeting later this month.

Australian Trade Minister Simon Crean described the timing of the decision as "dreadful," saying "it sends the wrong signal, we must be stepping back from measures that invite retaliation."

He said the decision would make it more difficult to achieve progress at the G20 toward finalizing the Doha Round trade talks, according to the Sydney-based newspaper the Australian Wednesday.

Obama's order raised tariffs for three years on Chinese tires -- by 35 percent in the first year, 30 percent in the second and 25 percent in the third.

The decision was also opposed by the U.S. tire industry. The Tire Industry Association (TIA) said it was "deeply disappointed" with the decision.

The TIA is an international association representing all segments of the tire industry, including those that manufacture, repair, recycle, sell, service or use new or retreaded tires, and also those suppliers or individuals who furnish equipment, material or services to the industry.

The TIA believes tariffs will "price" low-cost tyres "out of reach for many customers and will lead to a tightening in the remaining supply of lower-cost tires," according to a TIA press release.

"Also, given that lower-cost tires imported from China help those most vulnerable in this current economy... We are deeply concerned that many consumers may delay or even defer replacing their tires when necessary, thus creating a potential safety hazard on America's roads," added the TIA.

"TIA believes this was a politically motivated decision that will end up costing more jobs than it saves," said TIA Executive Vice President Roy Littlefield.

GITI Tire (USA) Ltd., a member of the American Coalition for Free Trade in Tires, has already issued an official statement expressing its disappointment.

"This decision will cost many more American jobs than it will create," said Vic DeIorio, GITI's executive vice president. "It will also increase costs for, and take away choices from, American consumers."