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

This proclamation imposes additional tariffs on Chinese passenger vehicle and light truck tires for three years (35%, 30%, and 25% ad valorem in successive years) following a USITC finding of market disruption under Section 421 of the Trade Act of 1974. The tariffs take effect September 26, 2009, and modify the Harmonized Tariff Schedule accordingly.

Federal Register Open PDF 74 FR 47861

Impact dates

Sep 26, 2012
Three-year relief period expires
Sep 26, 2010
First-year 35% duty period ends; second-year 30% duty begins
Sep 26, 2009
Tariffs take effect on goods entered or withdrawn from warehouse for consumption

Key directives

Impose additional 35% ad valorem duty on specified Chinese tires for first year
Impose additional 30% ad valorem duty for second year
Impose additional 25% ad valorem duty for third year
Modify HTS subchapter III of chapter 99 as specified in Annex
Supersede inconsistent prior proclamations and Executive Orders

Timeline

Immediate

Proclamation signed September 11, 2009
Tariffs take effect September 26, 2009 at 12:01 a.m. EDT

Near term (90d)

First-year 35% additional duty applies through September 2010

Long term

Second-year 30% duty: September 2010-September 2011
Third-year 25% duty: September 2011-September 2012
Relief expires after 3-year period unless modified

Risks & tensions

Risk of Chinese retaliation against U.S. exports
Potential consumer price increases for tires in U.S. market
WTO compliance concerns given China accession protocol obligations
U.S.-China trade relations tension