China Imposes Dumping Duties on U.S. Vehicles

In September 2011, the World Trade Organization rejected China's appeal of a previous WTO ruling that approved the imposition of additional duties on imports of Chinese tires into the United States.  In what appears to be a retaliatory "tit-for-tat" move China announced plans to impose dumping duties on certain vehicles imported from the U.S.

The current tariff rates for cars imported to China is 25 percent.  The punitive duties will apply to vehicles with engines exceeding 2.5 liters.  Initial reports indicate that General Motors can expect to be hit the hardest with punitive duties up to 12.9 percent while BMW may not feel as much pain with additional duties of 2 percent. 

Stay tuned as the battle of tires versus vehicles continues.