The duties were for a small market of tires. The duties are graduated from year to year the highest being the first year as follows:
- 35% for the first year September 2009 to September 2010.
- 30% for the second year September 2010 to September 2011.
- 25% for the third year September 2011 to September 2012.
- No additional duties after September of 2012.
- The Chinese imports did not increase rapidly enough to warrant a market disruption.
- The imports were not in suffciant quantities to damage U.S. industries.
- The U.S. industries are not materially injured
- Even if they are injured the rates are excessive to remedy the problem
- The measures are lasting too long to prevent what ever injury there might be.
On September 26th China requested consultations, December 9th a panel, and today the panel was chosen.
Within another year they might have preliminary decision, which could be appealed, and maybe after three years we might actual a decision where they can retaliate. The decision will probably not be reached by the time the tariffs expire so this whole exercise seems moot to most observers.
This is probably the smallest but most publicized part of the trade war that is growing between China ind its trading partners. The largest unreported part of the trade war is the explosion of antidumping and counervailing cases being filed in the U.S. and Europe. Another large isue coming to light is the allegations of Chinese government hacking into private companies and foreign government computers.
Could be difficult times for relations ahead.