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US penalizes Chinese tires, infuriating Beijing

Harry Guerrilla

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US penalizes Chinese tires, infuriating Beijing - Yahoo! News

WASHINGTON – President Barack Obama's decision to impose trade penalties on Chinese tires has infuriated Beijing at a time when the U.S. badly needs Chinese help on climate change, nuclear standoffs with Iran and North Korea and the global economy.

China condemned the White House's announcement late Friday as protectionist and said it violated global trade rules. At home, the punitive tariffs on all car and light truck tires coming into the U.S. from China may placate union supporters who are important to the president's health care push.

Obama had until this coming Thursday 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. The 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 35 percent the first year, 30 percent in the second and 25 percent in the third, White House press secretary Robert Gibbs said

"The president decided to remedy the clear disruption to the U.S. tire industry based on the facts and the law in this case," Gibbs said.

There hasn't been an obvious increase of exports of tires to the U.S., the statement said, citing a 2.2 percent increase in 2008 from 2007, and a 16 percent fall in exports in the first half of 2009 compared with first half of 2008.

The new tariffs, on top of an existing 4 percent tariff on all tire imports, take effect Sept. 26.

For the Chinese government, the tire dispute threatens an economic relationship crucial to China's economic growth. There was speculation before the decision that new tariffs could produce public pressure on Beijing to retaliate, potentially leading to a trade war.

This is really bad policy considering China owns a ton of our debt and they are about to introduce some low cost econo cars to the U.S. either this year or early next.

All this crap does is penalize low income people in favor of union interests by raising costs on car and tires.
 
US penalizes Chinese tires, infuriating Beijing - Yahoo! News







This is really bad policy considering China owns a ton of our debt and they are about to introduce some low cost econo cars to the U.S. either this year or early next.

All this crap does is penalize low income people in favor of union interests by raising costs on car and tires.

Hell we should put a 100% taffif on all Goods from China starting with the Textile Industry. Withhtat we can start putting Americans back to work by forcing these Company's that have of the past 35+ Years move Jobs out of the USA to Cheaper Labor and Enviromental Rules.

Finally something I can actually support Mr. Obama on well done.

As for the So-Call new Car nope won't be come to America doesn't meet EPA Standers and China will not redesign it.
 
Hell we should put a 100% taffif on all Goods from China starting with the Textile Industry. Withhtat we can start putting Americans back to work by forcing these Company's that have of the past 35+ Years move Jobs out of the USA to Cheaper Labor and Enviromental Rules.

Finally something I can actually support Mr. Obama on well done.

As for the So-Call new Car nope won't be come to America doesn't meet EPA Standers and China will not redesign it.

The Chinese have had issues with quality in many areas, however, they are planning to provide us with a viable alternative to most of the cars in the market which are nearly all priced over $10,000.

A lot of the cars China has planned to introduce are under $10k which is good for low income people that don't need to get in over their heads with more expensive cars.

Not to mention again that China owns a ton of our dollars and if they wanted to dump some of it on the world currency exchange in order to punish us, it would not turn out well for most people.
The dollar would be worth a lot less than it is now if they did so.

Protectionism by and large is for the 18th and 19th century.
 
Hell we should put a 100% taffif on all Goods from China starting with the Textile Industry. Withhtat we can start putting Americans back to work by forcing these Company's that have of the past 35+ Years move Jobs out of the USA to Cheaper Labor and Enviromental Rules.

Finally something I can actually support Mr. Obama on well done.

As for the So-Call new Car nope won't be come to America doesn't meet EPA Standers and China will not redesign it.

China has lent out its hands to help us. We respond by making it hard to do business in this country?

It makes me question who the a-holes really are. I don't think it's China.
 
Hell we should put a 100% taffif on all Goods from China starting with the Textile Industry. Withhtat we can start putting Americans back to work by forcing these Company's that have of the past 35+ Years move Jobs out of the USA to Cheaper Labor and Enviromental Rules.

I really do not believe that a 100% tariff would do anything "positive" to the unemployment rate. You have to remember, specialization in trade allows Americans to live outside of our production possibilities frontier, and the same can be said of China. The price shocks associated with US produced textiles would most likely cause the demand curve to flatten out, thereby putting an ever larger gap in output (potential output-total output) which would cause further unemployment....
 
The Chinese have had issues with quality in many areas, however, they are planning to provide us with a viable alternative to most of the cars in the market which are nearly all priced over $10,000.

A lot of the cars China has planned to introduce are under $10k which is good for low income people that don't need to get in over their heads with more expensive cars.

Not to mention again that China owns a ton of our dollars and if they wanted to dump some of it on the world currency exchange in order to punish us, it would not turn out well for most people.
The dollar would be worth a lot less than it is now if they did so.

Protectionism by and large is for the 18th and 19th century.

Since the poster before you brought up the illegality of importing one of these cars due to EPA regulations, it behooves you to address that point, before rolling merrily along discussing the car's advent. Address Scorpion89's point please . . .

As for the So-Call new Car nope won't be come to America doesn't meet EPA Standers and China will not redesign it.
 
Since the poster before you brought up the illegality of importing one of these cars due to EPA regulations, it behooves you to address that point, before rolling merrily along discussing the car's advent. Address Scorpion89's point please . . .

They have to meet EPA standards before they are allowed to be sold in the first place.

Importation will be restricted on that alone, so they'll do that or they won't sell them here.
If they somehow do get them in the country to be sold when the purchaser brings the information to the state for processing of title and registration they will most likely be denied which will cause them to not be able to sell those.
 
Finally something I can actually support Mr. Obama on well done.

Aside from possible union ties I have to agree. I have always believed what can be made in america should be made and sold in america. Why do we continue to give all our money away? Its funny how all these high export countries are now becoming wealthy at our expence. I guess people dont realize we are trading our wealth away to others while at the same time we lose our own. Who knows in 100 years our great grand children may be working in a sweatshop to send poducts overseas so chinese fatcats can buy cheap products with our own money.
 
Less free trade in car parts means less competition, which means higher prices and/or lower quality, which means people on a fixed budget can't keep their car as well-maintained as they could have, which means more accidents. This will translate into thousands of avoidable deaths - murdered by government tariffs! :(

This also translates to the most value-competitive tire manufacturing workers in the world being punished for their success, which means greater poverty in the "third world".
 
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Hell we should put a 100% taffif on all Goods from China starting with the Textile Industry. Withhtat we can start putting Americans back to work by forcing these Company's that have of the past 35+ Years move Jobs out of the USA to Cheaper Labor and Enviromental Rules.

Finally something I can actually support Mr. Obama on well done.

As for the So-Call new Car nope won't be come to America doesn't meet EPA Standers and China will not redesign it.
Brilliant idea! Then instead of textiles being made in China, they'll be made in India instead, or any one of dozens of other countries where labor is significantly cheaper than here! That'll really get Americans back to work! :roll:
 
Brilliant idea! Then instead of textiles being made in China, they'll be made in India instead, or any one of dozens of other countries where labor is significantly cheaper than here! That'll really get Americans back to work! :roll:

Fine how about this 100% Taffit on all Textile Products that come in from other Countries. I'm from New england I watch the Textile Industry Die because these Companies moved good paying jobs out of the United States oversea's so they could save on labor and EPA related items.

What would this do for us(America) first it would put Americans back to work re-open an Industry that has basically died because of Outsourcing. But hey let's not just stop at Textile lets go after all Companies that have closed Plants up and moved them to to ther Countries to escape EPA and labor Rules, Here are a few that come off the top of my head.

Hershey Candys, John Deer,Caterpillar,Black and Decker,Mar Candy Corp.
 
Fine how about this 100% Taffit on all Textile Products that come in from other Countries. I'm from New england I watch the Textile Industry Die because these Companies moved good paying jobs out of the United States oversea's so they could save on labor and EPA related items.

What would this do for us(America) first it would put Americans back to work re-open an Industry that has basically died because of Outsourcing. But hey let's not just stop at Textile lets go after all Companies that have closed Plants up and moved them to to ther Countries to escape EPA and labor Rules, Here are a few that come off the top of my head.

Hershey Candys, John Deer,Caterpillar,Black and Decker,Mar Candy Corp.

Do you know that nothing lasts forever?

The U.K. was the heart of the textile industry about 150 years ago and now not so much.
Guess who stole their thunder?
We did because we could do it cheaper and guess what some one else is better at it than we are, so it now goes to them.

I swear that this idea that you can tax your way into job creation needs to die a vicious death.
 
I swear that this idea that you can tax your way into job creation needs to die a vicious death.

Definitely. People are forgetting who gets screwed if we start this kind of tariff. It's not just the Chinese, but Americans as well.
 
I swear that this idea that you can tax your way into job creation needs to die a vicious death.

Well, there's always the OTHER solution often put forth:

Unionize China. :roll:
 
I can't even begin to describe how bad this policy is. And I'm sure that Obama's economic advisers unanimously told him this. So the question is why are we doing this? Obama doesn't need to appease the unions. He bailed out the auto companies so the unions have already used up their favor; he doesn't owe them a damn thing anymore.

Tariffs are probably the single worst economic policy we routinely engage in.
 
Fine how about this 100% Taffit on all Textile Products that come in from other Countries. I'm from New england I watch the Textile Industry Die because these Companies moved good paying jobs out of the United States oversea's so they could save on labor and EPA related items.

What would this do for us(America) first it would put Americans back to work re-open an Industry that has basically died because of Outsourcing. But hey let's not just stop at Textile lets go after all Companies that have closed Plants up and moved them to to ther Countries to escape EPA and labor Rules, Here are a few that come off the top of my head.

Hershey Candys, John Deer,Caterpillar,Black and Decker,Mar Candy Corp.
It doesn't work that way, champ. Throwing up a tariff is cutting your nose of to spite your face. And just how do you "go after" a company that outsorces? Do you propose to hold a gun to the CEO's head until he brings jobs back to the US?

The only thing your idea would do is punish the American consumer. It wouldn't put anyone back to work.
 
Fine how about this 100% Taffit on all Textile Products that come in from other Countries. I'm from New england I watch the Textile Industry Die because these Companies moved good paying jobs out of the United States oversea's so they could save on labor and EPA related items.

What would this do for us(America) first it would put Americans back to work re-open an Industry that has basically died because of Outsourcing. But hey let's not just stop at Textile lets go after all Companies that have closed Plants up and moved them to to there Countries to escape EPA and labor Rules, Here are a few that come off the top of my head.

Hershey Candys, John Deer,Caterpillar,Black and Decker,Mar Candy Corp.

Scorpion, you make an outstanding point!

Think of how much the air quality has improved in the US with the outsourcing of various manufacturing industries. Not saying that things will slide to zero on the manufacturing side, but having an economy dominated in manufacturing has a dramatic effect on the overall health and wellness of its citizens.
 
^^But having an economy that, you know, produces things, would be good.
 
You say "dumping" as if it's a bad thing.


^^But having an economy that, you know, produces things, would be good.

USA has the strongest service sector in the world: science, engineering, software, entertainment, business, banking, etc. That's what's most desirable. Some parts of the world specialize in thinking, others in sweating - for now.
 
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What's wrong with service-based economies? :confused:

All manufacturing jobs pay $29.50/hr doing good hard American work at the plant, while all service jobs are $5.75/hr mopping up at McDonalds.

Didn't you get the memo?
 
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