By on July 5, 2012

The United States will report China to the WTO tomorrow, Reuters says. The contention: China’s decision to impose extra duties on more than $3 billion worth of cars imported from the U.S. According to Reuters, “the complaint comes as President Barack Obama campaigns in Ohio, where auto plants have been affected by the duties.” The Prez goes on a “Betting on America” bus tour.

In April 2011, China enacted punitive tariffs against cars imported from America.
The tariffs were heavily skewed against GM and Chrysler. China’s argument was that both were the recipient of government subsidies. The U.S. had used the same argument for imposing tariffs against Chinese products.

Said a U.S. trade official in an email to Reuters:

“The duties disproportionately fall on General Motors and Chrysler products precisely because of the actions that President Obama took to support the U.S. auto industry during the financial crisis. The president’s re-election campaign has sought to tie his Republican opponent, Mitt Romney, to the outsourcing of American jobs to China, tapping into public worry over high U.S. unemployment that will be a key factor in the Nov. 6 ballot. “

The dog wagging is the latest chapter in the drawn out trade war. It was started by America in 2009 when the U.S. enacted punitive tariffs against low priced made-in-China tires. Production of low cost tires moved to Thailand, from where they were imported duty free until that loophole was closed.

PS: Today, WTO spokesman Keith Rockwell told Reuters: “We have now received formal notification from the U.S.,”

Get the latest TTAC e-Newsletter!

9 Comments on “Trade War Watch 21: America Drags China In Front Of WTO As Obama Campaigns In Ohio...”


  • avatar
    jpolicke

    Wasn’t part of the tire issue the fact that many of these tires were of frighteningly poor quality and were shipped here from companies that had no US presence and no chain of accountability for recalls and warranty support?

  • avatar
    NormSV650

    “Everybody, except for the United Steelworkers, agrees that this is one of the most boneheaded decisions of the new administration.” And Obama ads show Mitt as the job killer. Thanks for refreshing our memories.

  • avatar
    carguy

    China bashing is always very popular in an election year. Romney has done it and Obama is doing it too but Obama is president so he can underline his rhetoric with action. In both cases the results will be largely unproductive.

  • avatar
    bd2

    Yeah, US tire manufacturers (like US steel-makers) had absolutely nothing to do with it.

    And China raising the whole govt.-subsidies argument is sinply laughable.

  • avatar
    cwallace

    I’ve yet to see a photo of Bob King in which he doesn’t look completely out of his depth.


Back to TopLeave a Reply

You must be logged in to post a comment.

Subscribe without commenting

Recent Comments

New Car Research

Get a Free Dealer Quote

Staff

  • Authors

  • Brendan McAleer, Canada
  • Marcelo De Vasconcellos, Brazil
  • Matthias Gasnier, Australia
  • W. Christian 'Mental' Ward, Abu Dhabi
  • Mark Stevenson, Canada
  • Faisal Ali Khan, India