The United States International Trade Commission (ITC) has announced remedy proposals in its safeguard investigation regarding certain passenger and light truck tires from China.
The ITC is proposing that President Barack Obama "impose a duty, in addition to the current rate of duty, on imports of certain passenger and light truck tires from China," according to a statement released earlier today, June 29, by the commission.
The United Steelworkers originally asked for a quota to be placed on Chinese consumer tire imports.
"This duty would be 55% ad valorem in the first year, 45% ad valorem in the second year and 35% ad valorem in the third year."
(According to the "Financial & Investment Dictionary," ad valorem is a Latin term meaning "according to value." It is a way of assessing duties or taxes on goods or property. Ad valorem duty assessment is based on the value of the imported item rather than on its weight or quantity.)
The ITC also announced that it will recommend, "if applications are filed, (that) the President direct the U.S. Department of Labor and the U.S. Department of Commerce to provide expedited consideration of trade adjustment assistance for firms and/or workers that are affected by subject imports."
The ITC will submit its proposed remedies to President Obama's office by July 9. President Obama "will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief."
