Tire spat may affect US automakers in China

Published: 14 Sep 2009 23:29:42 PST

Shanghai, September 15 (Gasgoo.com) The ongoing China-U.S. trade dispute will drive tire prices higher for American consumers and also threatens to complicate business for U.S. automakers in the booming Chinese market if unresolved, media reported.

The Obama administration said on Sept. 11 that it would adopt steep tariffs on tire imports from China later this month, a move tire distributors said would have the effect of raising the price of low-cost tires to U.S. consumers almost immediately.

China denounced the U.S. decision as trade protectionism and launched an anti-dumping investigation into imports of U.S. auto parts and other items, including chicken products.

The disputes threaten to draw in U.S. auto companies, most of which have joint ventures in China that produce car parts and full vehicles for the fast-growing Chinese market, which is critical for U.S. automakers looking to target growing regions.

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