The WTO Supports U.S. Tariff on Chinese Tires

The World Trade Organization has supported the Obama administration's decision in September 2009 to enact tariffs on Chinese tires imported to the U.S. The WTO said the president's claim that such imports disrupted the domestic tire market was warranted.

China contested the U.S.'s tariff decision, saying the U.S. didn't provide sufficient data proving that a jump in Chinese tire imports materially hurt the domestic U.S. market. The tariffs were to be as much as 35% during the first year, 30% during the second and 25% during the third, the WTO said in the 128-page report it released Monday.

The ruling ay ratchet up tensions between the U.S. and China as trade regulators from the two countries prepare to meet for their annual talks, according to the The Wall Street Journal.

China responded to the tire tariff last year by enforcing its own tariffs on imports of chicken, nylon and other products from the U.S.