Some elements of the North American tire industry took a hit yesterday after the U.S. House of Representatives joined the Senate in passing new legislation that would allow the government to impose higher tariffs on goods from state-controlled economies that subsidize exports to the U.S.

The legislation targets the tire industry in particular, and was drafted and presented in reaction to the December 2011 federal appeals court ruling that the Commerce Department did not have the power to levy so-called punitive countervailing duties, effectively tossing out a series of duties – some as high as 210% – it placed on China-produced OTR and ag tires imported into the U.S.

Those added duties, placed on the products in 2008, severely damaged the U.S.’s small OTR and ag tire market and led to the bankruptcy and eventual dismantling of importer and marketer GPX International.

The House passed the new tariff measure 370-39 yesterday, and the Senate passed its version the day prior with a voice vote and no debate. The bill has been sent to President Obama for his signature.

“By passing this law, Congress has taken a clear stand against the unfair trade practices that have put countless American jobs in jeopardy,” Vice President Joe Biden said in a prepared statement.

Bridgestone Americas, Titan International and the USW brought the original action in 2007, and the Commerce Department’s 2008 ruling had been bounced through both the U.S. court system and the World Trade Organization, both of which eventually ruled that the U.S. was applying punitive tariffs illegally and was, in fact, “double charging” on the import tax.

There has been no comment by any member of the tire industry.