Obama's Tire Tariff Backfires As China Considers High Tarriff On US Automobiles

President Barack Obama's decision to impose heavy tariffs on Chinese-made tires may prompt China to retaliate against U.S. auto and poultry exports.

China took its case to the World Trade Organization Monday, after Obama ordered additional U.S. tariffs on Chinese tires for three years, including 35 percent in the first year. The increases come on top of the current 4 percent tariff.

Besides challenging the tire tariffs before the WTO, the Chinese government said it would investigate on its own to determine whether the United States is improperly selling auto parts and poultry in China at unfairly low prices and with unfair government subsidies -- a process that could trigger Chinese tariffs on these products.


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