U.S. imposes 35 percent tariff on Chinese tires

[wphelan]

Anyone here support this tariff? I don't agree with many, if any, tariffs, but this seems like a particularly bad time to start throwing up protectionist barriers to trade. I've read that Obama is pandering to big union so they will support his healthcare initiative, but wouldn't they be doing that already? I don't get it.

I couldn't find the full report on the USITC website, but I did find a news release about the report. All it says is that the increasing number of imported tires from China is disrupting domestic production of tires. The report actually recommended a 55 percent tariff, but Obama is starting out at 35 percent and decreasing it each year over three years.



http://www.bloomberg.com/apps/news?pid=20601087&sid=aw9CToF8Dd8I
http://www.usitc.gov/press_room/news_release/2009/er0629gg1.htm

[Lily]

I don't know. Protect some American jobs from Chinese tire imports in exchange for supporting an initiative? Ehh.. seems like BAU in Washington. Wal-Mart alone imports enough Chinese goods to make up for that tariff.

[Zarquon]

a stupid move that will only exacerbate the decline of American industry. competition is what makes you stronger, not 'protection'.

[Michael]

Anyone here support this tariff? I don't agree with many, if any, tariffs, but this seems like a particularly bad time to start throwing up protectionist barriers to trade. I've read that Obama is pandering to big union so they will support his healthcare initiative, but wouldn't they be doing that already? I don't get it.

I couldn't find the full report on the USITC website, but I did find a news release about the report. All it says is that the increasing number of imported tires from China is disrupting domestic production of tires. The report actually recommended a 55 percent tariff, but Obama is starting out at 35 percent and decreasing it each year over three years.
I find it amusing that two-thirds of tire imports that are subject to this tariff are the big American tire companies themselves.

Btw, check out the 2nd last paragraph in the Bloomberg link...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aw9CToF8Dd8I

Seems they felt some need to lie and make stuff up about about George W. Bush's Administration in order to add to the news article. :ummm:

I wonder what that's all about? The G.W. Bush Administration introduced massive tariffs on imported steel in 2001/02. I guess that doesn't count for some reason.

[Americano]

Anyone here support this tariff? I don't agree with many, if any, tariffs, but this seems like a particularly bad time to start throwing up protectionist barriers to trade. I've read that Obama is pandering to big union so they will support his healthcare initiative, but wouldn't they be doing that already? I don't get it.

I couldn't find the full report on the USITC website, but I did find a news release about the report. All it says is that the increasing number of imported tires from China is disrupting domestic production of tires. The report actually recommended a 55 percent tariff, but Obama is starting out at 35 percent and decreasing it each year over three years.



http://www.bloomberg.com/apps/news?pid=20601087&sid=aw9CToF8Dd8I
http://www.usitc.gov/press_room/news_release/2009/er0629gg1.htm

There has to be more to this than meets the eye. The US tire industry association vigorously opposed it (other than Goodyear, the only major US tire manufacturer who recently signed new unions contracts) and all tire distributor and retailers were against it.

China's share of the US tire replacement industry was 16.7% in 2008, and of all Chinese tire exports to the US two-thirds were/are made by Chinese companies with 50% (the maximum) US ownership. Not what I'd term a danger to US tire manufacturers.

I've read opinions for and against the tariff and my personal opinion is that it is pure and simple protectionism for a high labor/benefit cost US industry. Considering how the US dumps public subsidized grain all over the world at prices below production costs we certainly have weak grounds to accuse other nations with lower COGS of dumping.

Two days after the tariff was approved, China opened an investigation into US dumping of auto and chicken parts in China. It could get interesting as a debtor nation dependent on credit from China takes a protectionist stance. US consumers with stagnated wages and declining PPP will, of course, take the hits.