US Fires Opening Salvo In Trade Wars With China
 

US Fires Opening Salvo In Trade Wars With China

Top Chinese diplomats in Washington on Tuesday warned against "trade wars," as President Obama faces a looming decision on whether to erect barriers against the import of Chinese tires.

"Trade wars between China and the United States is the last thing that our two countries need right now," said Xie Feng, deputy chief of mission for the Chinese Embassy in Washington.

The Obama administration currently is facing a decision on whether to impose tariffs against Chinese tires, following the recommendation of the U.S. International Trade Commission. The president has until Sept. 17 to decide.

The United Steelworkers of America, the union that represents many of the 8,000 American workers who it says have lost or will lose their jobs because of competition from Chinese tire production, called Tuesday for the White House to go further than the ITC recommendation and impose a tariff of higher than 55 percent. Let the Game Begin.

Hopefully Obama won't cave to the pressure to enact another Smoot-Hawley Tariff Act... That would hurt the world economy.

Though it's not surprising to see pressure for passing protectionist laws in a recession (that, as it seems, it's starting to end).

No he will not. I had once told it here "When real politics start it does not matter if it is Obama or Bush"

U.S. to Impose Tariff on Tires From China
By Peter Whoriskey and Anne Kornblut
Washington Post Staff Writers - Saturday, September 12, 2009

In one of his first major decisions on trade policy, President Obama opted Friday to impose a tariff on tires from China, a move that fulfills his campaign promise to "crack down" on imports that unfairly undermine American workers but risks angering the nation's second-largest trading partner.

Those tire-makers, they'd better "thread" carefully.