ExecutiveOrdersEO
DetDeterminationObama · D

Presidential Determination

Imports of Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China

President Obama imposed additional tariffs on Chinese passenger vehicle and light truck tires for three years (35%, 30%, 25% ad valorem) following a USITC finding of market disruption under Section 421 of the Trade Act of 1974. The determination also directs Commerce and Labor to expedite Trade Adjustment Assistance for affected domestic workers and firms.

Federal Register Open PDF 74 FR 47433

Impact dates

  1. Three-year tariff period expires

  2. Year 2 tariff reduction to 30%

  3. Tariff takes effect (year 1: 35% additional duty)

Key directives

  • Impose additional 35% ad valorem duty on Chinese passenger vehicle and light truck tires in year 1
  • Reduce additional duty to 30% ad valorem in year 2
  • Reduce additional duty to 25% ad valorem in year 3
  • Secretary of Commerce and Secretary of Labor to expedite Trade Adjustment Assistance applications
  • USTR to publish memorandum in Federal Register

Who is ordered

Timeline

Immediate

  • Additional 35% tariff takes effect on Chinese tires
  • Secretary of Commerce and Secretary of Labor directed to expedite Trade Adjustment Assistance applications

Near term (90d)

  • USTR to publish determination in Federal Register

Long term

  • Year 2: tariff decreases to 30%
  • Year 3: tariff decreases to 25%
  • Three-year tariff period concludes

Risks & tensions

  • Risk of Chinese retaliation against U.S. exports
  • Potential WTO challenge to Section 421 safeguard measure
  • Consumer price increases for tires in U.S. market
  • Tension between trade protection and free trade principles
Presidential Determination: Imports of Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China · Executive Orders