Posted on 12/16/2011 7:33:02 AM PST by Qbert
President Barack Obama hit China automobile tire makers with a trade tariff in 2009 and now Beijing has struck back with a potentially more punitive tariff, as much as a 21% tax hike on U.S. car exports bound for China, the world’s largest auto market.
This week, the Chinese government upped the ante in the Obama-China trade dispute by surprisingly imposing new tariffs on imports of Honda and Cadillac models, Chrysler Jeep Grand Cherokee, the BMW X5 and X3 and Mercedes Benz models made in Michigan, Alabama and South Carolina. China argues that the U.S. provided illegal subsidies to these companies during the economic downturn in 2008 and is selling those vehicles cheaper in China than they are sold for in the U.S.
The U.S. exports around $92 billion worth of goods to China and cars account for around $4 billion of that. The tariffs, which range from just 2% to as much as 21.5% could impact $2.5 billion worth of American auto exports, according to preliminary estimates by the U.S-China Business Council, a Washington lobby.
China’s Commerce Ministry announced the move shortly after the White House said it would ask the World Trade Organization to investigation Chinese restrictions on U.S. poultry exports, of all things. But more importantly, the U.S is also investigating whether Chinese exports of solar panels might have received illegal subsidies or have been dumped in the American market at prices below the cost of manufacturing them. This is a major sore spot for China because it views green tech as one of its core and most innovative developing markets.
[Snip]
What better market to go after in the U.S. than autos? The red dragon just blew a hot stream of fire across the Pacific Ocean, right on top of the White House.
(Excerpt) Read more at forbes.com ...
When Obama promised during the 2008 campaign to enact the economic policies of Herbert Hoover, he wasn’t kidding.
Smoot-Hawley
It was a “surprise” that China retaliated? Really, Mr. Rapoza?
Please study the early 1930s for instructive lessons.
I hope they choke General Tso’s Chicken.
Makes since he would do this because historically it is economically depressing...and afterall, that is what Ibama is into..economically depressing the US.
Wonder what else he has planned before 2012?
Maybe another war?
Maybe a short sighted war with Iran or Syria or N Korea?
Think how Obama thinks: What is bad for the US..BINGO!
I meant to say “makes sense”
If the “free trade” maroons somehow convince the GOP to stand on the Chinese side of this, it will destroy the party.
America first.
“China argues that the U.S. provided illegal subsidies to these companies during the economic downturn in 2008 and is selling those vehicles cheaper in China than they are sold for in the U.S.”
This is good for the US consumer in that it does away with some of the graft and corruption the president has been using. The extra money made in the US is supporting the UAW, which in turn is supporting the Democratic Party. The more transparency the cheaper the products become to the US consumer as it does away with the ability of the government to seek out quid-pro-quo with American suppliers.
George Bush put a tariff on steel to gain votes in Pennsylvania and other steel producing states. Once an international court ruled the tariff illegal other nations announced retaliation targeted at manufacturers in key districts that Bush needed to carry in the next election. Bush cancelled the steel tariff as it would have done irreparable harm to US industry and damaged his reelection prospects. The end result was cheaper steel to US consumers which echoed down the economy making everything slightly cheaper.
This isn’t about US jobs. It’s about graft and political favors. The Chinese have done us a favor.
"...But more importantly, the U.S is also investigating whether Chinese exports of solar panels might have received illegal subsidies or have been dumped in the American market at prices below the cost of manufacturing them."
That's what this is really about- Obama and his people lashing out and blaming the Chi-Coms for Solyndra's failures- and getting tariffs stuffed back in their faces in response.
Meanwhile, the US government continues to subsidize American solar panel manufacturers (at least the ones whose directors bundled money for Obama's 2008 Presidential campaign), which allows them to sell to the American market at prices below the cost of manufacturing them.
Thanks Qbert.
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