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Obama tyre tarrifs anger Chinese

China - Taking US to trade body
China - Taking US to trade body

China has taken the US to the World Trade Organisation over what it alleges are unfair tariffs on Chinese tyre imports.

'The US has adopted protective measures against Chinese tyres shipped to the US. This is a violation of WTO rules,' said Chinese Commerce ministry spokesman Yao Jian.

Amid warnings that a surge in Chinese-made tyres had cost more than 5,000 jobs in the US, President Barack Obama on Friday imposed punitive duties of 35% on the Chinese imports, igniting the first trade spat of his presidency just weeks before hosting his Chinese counterpart Hu Jintao.

The government-run US International Trade Commission (USITC) had urged duties of up to 55% after union leaders claimed imports of cheap Chinese tyres had tripled over the last five years.

But Obama opted for a lower figure in order to minimise Chinese anger. Under his plan tariffs, already at 4%, will soar by an additional 35% in the first year, 30% in the second and 25% in the third.

Beijing reacted strongly against the move, saying over the weekend that it would in turn investigate possible unfair practices in US exports of car parts and chicken meat.

Xinhua news agency also quoted experts as saying that 100,000 Chinese jobs could be lost as a result of US tariffs and that China's tyre industry would be worse off to the tune of $1 billion.