Skip to comments.Trade War?
Posted on 09/13/2009 10:22:08 AM PDT by Need4Truth
Is this the first step in what will become a full-fledged trade war?
The Obama administration will put steep import duties on Chinese passenger and light truck tires, responding to what the U.S. International Trade Commission determined to be a surge of Chinese tire exports.
The U.S. has announced a 35% import tariffs on tires from China, which would decline to 30% in the second year and 25% in the third.
At the risk of throwing a major wrench in global trade, Obama again reaches out to provide government muscle to prop up his union allies.
(Excerpt) Read more at economicpolicyjournal.com ...
To add to what I said in my last post, because we are also mired in two wars right now in Iraq and especially in Afghanistan where there seems to be no end in sight for the moment, China could very well take this opportunity to call in our debt, refuse to help us with North Korea and also invade Taiwan. Under such a scenario, there is little or nothing we could do about it.
I see this one too. If we lose reserve currency status - it’ll happen.
Think of the money the Chinese tax tariffs will rake in...all under the guise of protecting the American Workers.
Sorry, gotta disagree. Free trade helps everyone. Countless studies across the ideological spectrum prove this.
That said, free trade must deal with two main problems to be a net benefit to us:
(1) Free trade with nations that don’t have anything resembling bare minimum labor standards is problematic for the short and mid terms. This problem eventually fixes itself when labor costs invariably go up as the cheap labor market prospers. This is happening in China, but it is a SLOW process.
(2) Unions create artificially high labor costs in the US, making us uncompetitive. Those same unions garner govt (esp donk) protection, invariably leading to a trade war and possibly a hot war. Every loses when this happens. EVERYONE.
So we should continue on our current path, which will eventually lead to national ruin?... (or not so eventually, might only be a decade or so)
“Free trade” caused this mess. Every bit of it. Our factories are gone. Our skills are gone. Our jobs are gone. Reagan Democrats have abandoned the GOP, leading to a massive socialist takeover in America.
We’re increasingly broke. Industrially incapable. Unemployed. And losing all our useful technical skills.
Why do you suppose that is?... (asking rhetorically)
It’s not complicated: We sent them to China!
The GOP needs to become like Duncan Hunter. Aware of, and protective of, American STRENGTH.
Firing millions of Americans to spend what (used) to be our national wealth - to buy cheap crap from China, does not make America stronger.
Shut down imports.
Bring the factories back here.
Just do it. We have no other choice than to take a stand, which will not lead to inevitable eventual national collapse.
The current situation is leading just one way: toward strategic disaster.
I agree with your assessment. I call those guys 'bowling alley night managers'. This came about after hearing a 'night manager' piss and moan about well paid union members who could come in his employers place of business, play a few games, drink some beer and not crush their budget.
It never occurred to him to get a better paying job so he too could blow a few bucks while having fun with his buddies.
Too easy to bitch about well paid union guys :^(
Do the Chinese make safe tires? If they do it is the first decent product they have put out. I hate the thought of someone driving along side my family or friends on Chinese tires.
Another point is most people have no idea they are buying chinese tires. I pointed out some tires the other day an the guy driving the pickup had no idea he had bought imported tires.
Will the US tire companies start producing low-end low-cost tires? Unlikely. The price of tires for US consumers will rise until the importers can find another cheap source of tires.
At the same time, the Chinese will retaliate by putting tariffs on some US exports, like agriculture products.
A lose-lose proposition for the US and China.
How long do you think it is going to take to assimilate one billion plus chinese into a world economy. By the time they get there we will be a third world nation.
Who paid for the studies you are refering to and do you have links?
There are only two ways to create wealth, dig it out of the ground or manufacture products.
Only a small percentage of American jobs are union.
The chinese are creating jobs and exports, we are exporting our tecnology and jobs i.e the engine that runs our economy.
I can’t believe anyone could call what is going on “free” trade.
Actually, most modern wealth is created by the mind. I’m referring to the intellectual property and innovation embodied in products. I guess that can be considered part of manufacturing, but the “where it is assembled” is often disassociated with such wealth.
Frankly too lazy to cite sources for the studies, so take my word or not as you see fit. I stand by the statement in general, though.
As far as what we have going on not being free trade, I agree (and probably for similar reasons as you). We have a politicially distorted - by both US and Chinese govts - bastardization of free trade. Would a trade war be better, though? I tend to think not. We will almost certainly find out, though.
Game, set, and match to the U.S.
I’m generally pro-free trade (granting what we have now doesn’t qualify). You make a strong argument, several really, to the contrary.
Let’s not forget, too, one of the main blocks to more manufacturing at home: Environuts who also own the donks. So the donks cannot improve mfg here, and they also must bow at the union altar, leaving “strategic disaster” as you aptly call it the inevitable outcome.
You two aren't even on the same playing field.
"High paying jobs for workers" .NE. "Modern wealth" (whatever *that* is).
What has happened is that the Ivy-League trained MBAs and their associates got greedy, and wanted to make more money than under the tried-and-true methods which supported the US worker and the pre-eminence of the US in the world.
In addition, they listened to the lies of Third-World-sympathizers in the business schools who convinced them that there is substantial wealth on the low-end-tail of the bell curve, and to sell to the Third World. Compounded by the demographic trends, and false promises of the Third Worlders engaged in mercantilism.
Net result: people at the top got rich off of wage aribtrage and artificially moving around money and debt, instead of investing money into things which can be used to create new wealth. See also mortgage-backed securities and the like; "dark pools" and the like; and recent developments in stock trading technologies.
Compounded by 20 years of out-of-control government spending (socialism on the installment plan) and the wheels are coming off the bus.
And the elites have the nerve to look surprised.
Indeed this is a god move for the Hussein Plan For America - massive support for His union thugs and putting a lot of other people in retail out of work. Win-win situation...
Except for America...
You actually think Obama would have the stones to pull the nuclear trigger? LOL. Tell another funny one.
Dunlop tires are made in China (now) and quite a few of the former American brands...
Chinese quality is all over the map. Some of their plants are world class. Others are definitely not.
I have owned some Chinese made Kumho (Korean parent company) tires that are as good as anything on the market IMHO.
There are Chinese made "no name" brands that are not very good.
Game, set, and match to the U.S.
They got 3 boomers with JL-2s, each one carries 50 warheads. Do we really want to play this game?
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