The World Trade Organization has ruled against Beijing in a dispute with Washington over tire exports to the United States.

The WTO Monday upheld an earlier decision that the United States was within its trade treaty rights to impose up to a 35 percent tariff on Chinese-made tires after a surge in such imports damaged the U.S. domestic tire industry.

The dispute covers about $1.8 billion in car and light-truck tires. Tire companies in the United States say a surge of Chinese imports has cost the U.S. industry 5,000 jobs.

China is the second-largest U.S. trading partner, and the two sides exchange $457 billion in goods and services a year.