Washington D.C.: Tariffs such as those imposed by the US on Chinese tyre imports are protectionist and may end up hurting American industry and consumers should China retaliate, according to Capt Wei Jiafu, the boss of COSCO.
Levying tariffs "is not a sensible way to resolve the disputes," Wei said in a speech at the National Press Club in Washington. "It may help to leave more market share to US tyre manufacturers by increased tariffs, but these measures of protectionism will eventually harm American consumers and related sectors."
The Obama administration's decision last month to impose duties of 35 percent on $1.8 billion in automobile tyres sparked friction between the two countries, which are holding talks this week to reduce trade barriers.
While Cosco won't be significantly hurt by the U.S. move, further duties on other Chinese goods could cut start to cut into freight volumes, Wei said. China would probably retaliate with trade moves, including looking to Europe for purchases of high-technology goods rather than the US, Wei said.
"If it spreads to more areas, that will affect shipping and American industry and consumers," he said in an interview with Bloomberg. [27/10/09]
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