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TARIFF ON CHINESE TIRES

TARIFF ON CHINESE TIRES. Statistical Evidence . The U.S. imports of Chinese tires more than tripled from 2004 to 2008. Safeguard. Injury or Threat to a Domestic industry. Imported Product. The USITC. determines. Increase in Quantities. recommends. The President.

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TARIFF ON CHINESE TIRES

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  1. TARIFF ON CHINESE TIRES

  2. Statistical Evidence The U.S. imports of Chinese tires more than tripled from 2004 to 2008.

  3. Safeguard Injury or Threat to a Domestic industry Imported Product The USITC determines Increase in Quantities recommends The President Tariff as a Relief Imposes

  4. Tariff Penalty Rate The USitc The u.s. president 1st year: 35% 2nd year: 30% 3rd year: 25% Adjustment • 1st year: 55% • 2nd year: 45% • 3rd year: 35%

  5. Benefits VS. Drawbacks Pros cons The U.S. tire consumers have to pay a higher price The duties would be an act of protectionism and a violation of global free-trade principles There is a high probability that China will retaliate on import of chicken from the U.S. and could sell some of its extensive holding of U.S. Treasury debt. • To increase the U.S. domestic tire industry competition • To increase a domestic employment • To have a tax revenue that can be used for other purposes

  6. WELFARE EFFECTS OF A TARIFF pim pim A B C D a b c d pft pft E F G H e f g h pex pex Q Q IMPORTING COUNTRY EXPORTING COUNTRY

  7. IMPORTING COUNTRY pim A B C D pft E F G H pex Q

  8. EXPORTING COUNTRY pim a b c d pft e f g h pex Q

  9. Tariff Effects on:

  10. Thank You for Your Attention

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