Remember that 35% tariff President Obama imposed on tires imported from China this month? American drivers will sure find it hard to forget, as the higher costs start trickling down to U.S. consumers.
Since the tariff announcement on September 11, U.S. tire wholesalers have been warning that their sales prices to retailers will increase by about 15% on average. In some cases, the hikes are as high as 28%, according to industry sources. The only reason prices haven’t risen by the full 35% tariff rate yet is that wholesalers still have some pre-tariff inventory stocks in their warehouses.
China on Sunday started investigating complaints that American chicken products are being dumped in China and are unfairly benefiting from subsidies, adding to a string of trade disputes with Washington.
The Commerce Ministry said the probe was launched Sunday on broiler products and chicken products, following requests by Chinese companies to investigate the U.S. imports they say are hurting the domestic industry.
A U.S. labor union and three paper companies announced last week they had filed a new trade complaint over imports of Chinese paper. The move came a week after Beijing filed a World Trade Organization challenge to Washington’s decision to raise tariffs on imports of Chinese-made tires.
The two governments also are involved in disputes over access to each others’ markets for steel pipes, music and movies. On Tuesday, China appealed against a U.S. victory in a trade dispute over restrictions on the sale of U.S. music, films and books in the Chinese market.