As I have noted before here, Obama has already started two trade wars with out two biggest trading partners, Canada and Mexico. Apparently not content with that, he’s now picking a fight with China:
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 U.S. 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 percent tariff in the first year, 45 percent in the second year and 35 percent in the third year. Obama settled on slightly lower penalties — an extra 35 percent in the first year, 30 percent in the second, and 25 percent in the third, White House press secretary Robert Gibbs said.
As Mexico did, and the Canadian people have done, China has taken action against American imports:
China unexpectedly ratcheted up pressure Sunday on the United States in a widening trade dispute, taking the first steps toward imposing tariffs on American exports of automotive products and chicken meat in retaliation for President Obama’s decision Friday to levy tariffs on tires from China.
The impact of the dispute extends well beyond tires, chickens and cars. Both governments are facing domestic pressure to take a tougher stand against the other on economic issues.
Warren Meyer at Coyote Blog nails it:
Can anyone say, “Smoot-Hawley.” I am sure happy we all learned from the one unequivocal lesson that every economist, left-right-Keynsian-monetarist, took away from the Great Depression — that starting an international trade war is the best way to exacerbate a recession. Obama has done just about the only thing everyone agrees shouldn’t be done in response to a major economic downturn.
Liberals claim that trade with former enemies is the way to avert war with them. Even one of our greatest presidents RMN fell into this trap ( as well as telling a few fibs about illegal surveilance). So is Obama the real war-hawk here. Is he beating the war drums when he angers the Largest standing army in the world? I don’t agree with the most favored nation trade status that China holds with the US. Their human rights violation record is attrocious, but breaking WTO contract is serious stuff.
Liberals claim that trade with former enemies is the way to avert war with them. Even one of our greatest presidents RMN fell into this trap ( as well as telling a few fibs about illegal surveilance). So is Obama the real war-hawk here. Is he beating the war drums when he angers the Largest standing army in the world? I don’t agree with the most favored nation trade status that China holds with the US. Their human rights violation record is attrocious, but breaking WTO contract is serious stuff.