Trade Commission (ITC), asking it to investigate tire imports from China. Under U.S. trade law, if imports from a

country increase to the point that they cause market disruption in the United States, as determined by the ITC, then

it can also recommend a remedy for this market disruption. In this case, the ITC determined that from 2004 to

2008, U.S. tire manufacturers suffered declines in production, financial health, and employment as a direct result of

increases in tire imports from China. The ITC recommended placing an additional tax on tire imports from China.

President Obama and Congress agreed with the ITC recommendation, and in June 2009 tariffs on Chinese tires

increased from 4% to 39%. In addition, tariffs on Chinese tires increased further as part of President Trump’s

increases on a broad range of Chinese products.

Why would U.S. consumers buy imported tires from China in the first place? Most likely, because they are cheaper
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