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.
The decision is intended to bolster the ailing U.S. tire industry, in which more than 5,000 jobs have been lost over the past five years as the volume of Chinese tires in the market has tripled. It comes at a sensitive time, however. Leaders from the world's largest economies are preparing to gather in Pittsburgh in less than two weeks to discuss more cooperation amid tensions over trade.
The tire tariff will amount to 35 percent the first year, 30 percent the second and 25 percent the third.
Although a federal trade panel had recommended higher levies -- of 55, 45 and 35 percent, respectively -- the decision is considered a victory for the United Steelworkers union, which filed the trade complaint.
There are plenty of links to pick through to find the Obama critique that best fits your needs (reader beware: some of the linked articles contain lame "tire" puns):
If Free Trade Is Good, Why Are We Putting a 35% Tariff On Chinese Tires? Victor Klaar
Meet The New Boss, Same As the Old Boss - Cafe Hayek
A Victory For Protectionists - Greg Mankiw
US Tire Tariffs: Will China Retaliate? - Naked Capitalism
Friday Night News Dump - Powerline
In Announcing Tire Tariffs, Obama Timidly Chooses USW Over Everyone Else (and America's Free Trade Legacy) - Scott Lincicome (h/t Powerline)
Burning Rubber: Proposed Duties On Chinese Tires Whiff Of Senseless Protectionism - Daniel Ikenson (h/t Lincicome)
China & US: Tire-d of Fighting - Gaby Epstein
Me? I'm still trying to figure out when the United Steel Workers started to care so much about tires. And how the Hip Young President Leading the Vanguard of the Future has decided to engage in the sort of protectionist nonsense that is about 100 years out of date.
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