LONDON (ShareCast) - China has complained to the World Trade Organisation over America's decision to impose special duties on Chinese tyres.
Tensions are mounting after President Barack Obama announced safeguard duties of 35% on tyre imports
from China following claims they had cost over 5,000 US jobs.
'The United States has adopted protective measures against Chinese tyres shipped to the United States,' said Chinese Commerce ministry spokesman Yao Jian. 'This is a violation of WTO rules.'
But Obama had been under pressure to impose even higher taxes. The US International Trade Commission (USITC) had called for 55%.
Instead, the tariffs will increase by 35% from 4% currently, beginning on 26 September, reducing to 30% the year after and 25% in the third year.
Beijing has retaliated by launching an investigation into US exports of car parts and chicken products.
But analysts doubt the spat will develop into a full scale trade war as the parties involved have too much to lose.
The WTO will rule on the issue if the pair fail to sort things out during the next 60 days.