Obama likely to refuse tariff on China tire imports

Shanghai, August 10 (Gasgoo.com) Strong signs are emerging that U.S. President Barack Obama will turn down a proposed special tariff on Chinese tire imports, according to a Chinese business executive returning from a week-long American trip, media reported.

"More groups are lining up against the proposal," Shen Weijia, executive director of Giti Tire China, told China Daily. "The visit to the US was fruitful this time," Shen said.

The nine-member Chinese team, including tire makers, spent the week lobbying US authorities and attending a hearing held by the U.S. trade representative. They returned to Beijing last night, said China Daily.

Opposition to the duty is growing in the U.S. as the move is being seen as harmful to consumers and one that could cast a shadow over economic relations. Early next month, the U.S. trade representative will send a proposal to Obama, who will have to make a final decision by Sept 17.

General Motors and Ford Motor last week lobbied President Barack Obama to exempt tires for new cars from proposed tariffs on Chinese imports, saying such duties would raise the costs of new cars and trucks by as much as $150, Bloomberg reported.

This is widely believed as a test case for Obama on U.S.-China trade. "There is a high probability Obama will reject it, thanks not only to the growing criticism within the U.S. against the proposal, but also to the growing importance of China in helping the U.S. tide over the economic recession," said a WTO expert.