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International Business, 8th Edition by Michael H. Moffett, Iikka A. Ronkainen, Michael Czinkota

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PART 2 CASE 3

WILL TIRE TARIFFS LAUNCH A TRADE DISPUTE?

Trade policy can have a powerful economic and political impact both domestically and internationally, sending a message to both domestic constituents and foreign trade partners. This is the case of a U.S. trade policy action regarding imports of Chinese rubber tires.

The ITC recommendations and USTR information led to a presidential decision in September of 2009.

A PRESIDENTIAL PROCLAMATION

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release September 11, 2009

TO ADDRESS MARKET DISRUPTION FROM IMPORTS OF CERTAIN PASSENGER VEHICLE AND LIGHT TRUCK TIRES FROM THE PEOPLE'S REPUBLIC OF CHINA

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA, A PROCLAMATION1

  1. On July 9, 2009, the United States International Trade Commission (USITC) transmitted to me a report on its investigation under section 421 of the Trade Act of 1974, as amended (the “Trade Act”) (19 U.S.C. 2451), with respect to imports of certain passenger vehicle and light truck tires from the People's Republic of China (China). In its report, the USITC stated that it had reached an affirmative determination under section 421(b)(1) of the Trade Act that certain passenger vehicle and light truck tires from China are being imported into the United States in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products.
  2. For purposes of its investigation, ...

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