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Tit-for-Tat: Duties on Chicken Response to Tire Tariff

February 05, 2010
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Chinese officials have fired the next shot in a brewing trade war by slapping anti-dumping duties on chicken products imported from the U.S.

The duties, as high as 105.4%, were placed on whole birds, chicken sausage and other products like chicken feet, a delicacy in China. The China Commerce Ministry said the duties will begin on Feb. 13.

The added chicken duty was the direct result of the Obama Administration’s decision to add high tariffs – 35% in the first year – over a three-year period on consumer tires imported from China.

China announced its plans to investigate American chicken imports shortly after the tire tariffs were announced.

A Chinese investigation concluded U.S. chicken imports were being sold at prices that harmed Chinese competitors.
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avatar   Red   star   2/15/2010   9:42 AM

Paul V, China has had sanctions on its trading with other nations as per its application to the WTO. Which it has petitioned for redress with regard to the tire tariffs. Dumping means more than just selling below cost. It means a vast oversupply of goods that domestic products can't even hope to compete. Dumping is akin to flooding the market with inferior product so much so that the better quality product is crowded out. China instituting a hefty tariff on imported American chicken products has nothing to do with us dumping, it is a political play to show the US (and specifically the Obama Administration) that they can play the same game. Its unfortunate too, this is the beginning only, the white house should have left it (China) alone on a trade perspective.



avatar   Terry   star   2/8/2010   9:05 PM

Obama opened Pardora's Box with the tire tariff. Now China(our banker) will politely slap him down. A few Congressmen are asking for investigation into the effects of the tariff on dealers and the consumers. Obama, you have stepped in it again!!! Thank you; another nail in the coffin!!



avatar   tom h   star   2/6/2010   10:07 AM

go figure chickens for hoops, i guess their chicken farmer unions feel as though they are under represented and that american chicken products are going to cost them chicken jobs for thier low cost chickens that they dont even produce in china. hum sounds familiar union states un fair to import tires no longer made in U.S. cost jobs that they dont even have anymore unions priced themselves out of low cost tires years ago what a picture. cluck cluck cluck !



avatar   Pete   star   2/6/2010   9:09 AM

Wow we can trade chicken for tires, who knew!!!



avatar   Paul Vanderburg   star   2/5/2010   4:40 PM

If you're doing it because it's hurting your own economy, you can't call it "anti-dumping duties". Dumping is when acompany sells its product below its own manufacturing costs in an effort to bury the competition. If a company can make a profit and the competition still can't keep up, that has a toally different name: "haha, sucks to be you". Don't get me wrong, though. If the Chinese want to protect their chicken producers, then they can slap on whatever taxes they want. But the moment they do this (aka: right now), they can no longer squawk about free trade.



avatar   Tom D   star   2/5/2010   4:15 PM

How's that for HOPE and CHANGE!



avatar   ron   star   2/5/2010   1:39 PM

Obama should have antipated this ourcome. I think more will come .



avatar   Brian   star   2/5/2010   12:00 PM

Chicklen feet, are you kidding me? Wow!