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Chinese tire makers to raise prices for US market

(chinadaily.com.cn)
Updated: 2009-09-16 11:52

The Ministry of Industry and Information Technology and the Ministry of Commerce called on major Chinese tire makers yesterday to discuss measures to deal with the United States government's decision to impose a special tariff on tire imports from China, Guangzhou Daily reported.

Related readings:  Timely countermove on US tire tariff  Tire tax would weaken Sino-US trade: Official  Experts say tire tariffs could worsen US-China trade relations  China wants WTO talks on US tariffs  Obama sure US, China can avoid trade war

Zhou Zhiyong, general manager of a State-owned tire enterprise, said China's tire exports to the US will be greatly reduced because of the tariff.

He added that Chinese tire makers and exporters have therefore decided to raise the prices of their products exported to the US.

Many Chinese tire enterprises have received apology letters from some US tire distributers, expressing their disappointment in this policy adopted by the Obama administration, the newspaper said.

An industry insider told Guangzhou Daily that the Chinese tire enterprises will not give up the US market, but they will have to raise prices to prevent losses of profit.