Obama puts tariffis on some Chinese tires
President Barack Obama on Friday slapped punitive tariffs on all car and light truck tires entering the United States from China in a decision that could anger the strategically important Asian powerhouse but placate union supporters important to his health care push at home.
Obama had until Sept. 17  next week  to accept, reject or modify a U.S. International Trade Commission ruling that a rising tide of Chinese tires into the United States hurts American producers. A powerful union, United Steelworkers, blames the increase for the loss of thousands of American jobs.
The federal trade panel recommended a 55% tariff in the first year, 45% in the second year and 35% in the third year. Obama settled on slightly lower penalties  an extra 35% in the first year, 30% in the second, and 25% in the third, White House press secretary Robert Gibbs said.
This clause has existed in the law for some time, but Obama is the first to actually use it. Personally, I think it's justified in this case because China has been abusing our free trade agreement with them. They have been helping American companies setup factories in China, but only as long as they agree to not sell their products in China. This protects Chinese companies from competition by American companies, and is thus clear cut violation of the principle of free trade.
This could be the first sign that Obama intends to take a harder line with China on free trade, or just could be a one off gift to the unions who have been pushing hard for this one. Personally, I think Obama does need to push harder with China because the US economy will never be balanced as long as China is manipulating trade between the countries on this scale.
Jay