WASHINGTON -- 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 to impose tariffs on Chinese tires

If this is an isolated incident we can avoid a trade war with China. It behooves us all to remember the 1930 Smoot-Holley tariffs that most economists say hastened and deepened the Depression.

china will dick slap us for this

Well in fairness they have dumped on us. The WTO allows us to do so if proper evidence has been presented and the US ITC made a very strong case…..


please read the WHOLE article ....

U.S. levies tariffs on Chinese tires - Washington Times

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"The captain has turned off the `No Dubbing' sign. You are free to speak any language you choose."

Of course, there's all shades of conservatives. I happen to be in the Milton Friedman school of free trade. Tariffs hurt American consumers as much or more than foreign competitors.

Nonetheless, I understand the "fair trade" arguments.

Edit: my purpose in this thread is not to argue the merits of this specific case but to warn of the dangers of a trade war.

whoa, don't misunderstand me. I added the above for sake of equilibrium only, I don’t sppt the tariff, I though Bush made a mistake when he did so on steel too.


China does however need to have its hands slapped.

But again this is what we get when we go down the road of uber regulatory practices, just wait till cap and trade hits any industry it regulates…there won’t be a factory left here that makes toothpicks.

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"The captain has turned off the `No Dubbing' sign. You are free to speak any language you choose."

Why would we want to? If every last bit of China trade were to completely cease, most of us would be better off.

That's correct. If you see any moves in Congress to impose across-the-board tariffs on certain products, rather than targeted tariffs correcting for trade imbalances with specific countries, please remind said Congresscritters of what happened last time that was tried.

Of course, it's important first to make sure the similarity is really there. We're just talking a hypothetical so far, I believe.

You base that supposition on what evidence?



Don't worry, I'll be sure to remind my three GOP representatives who's side they're on.

I totaly have to disagree.

If every trade between the USA and China would stop, riots would merely start within weeks, because the USA-economy for/on itself couldn't provide enough/desired goods for it's citizens in the immediate short term.

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"Homo Homini Lupus"
Thomas Hobbes

You know, that's probably true - in the immediate short term. But it's only true because of the scam that produces goods in Chinese sweatshops instead of here, thus driving down U.S. wages. There's no reason why American industry couldn't rebuild, but although it could be done quickly it couldn't be done instantly.

However, in the long run, or even the not-so-immediate short term, I stand by what I said. It would probably be worth the short-term disruption to restore long-term economic health.

I'll add to that, though, that if current outsourcing practices were discouraged and Chinese wages driven up to the point where they could trade with us on a reasonably level table, in that truly long run trade with China would benefit everyone. The problem isn't trade with China per se, but that such trade is currently poisoned.

It's time to quit thinking about the here and now and start thinking about the long term! The only country I see worth trading with is Japan though! Besides.. we need to become a country of producers, not consumers! I think the world as a whole would benefit from a U.S. that manufactures and produces.

China can suck it up on this, they have a lot more to lose than the US on this one.
If a trade war starts, they have the most trade to lose, if they want to take it out on the US Dollar, they are the ones with all the dollars, we have dollar denominated debt, the dollar goes down and it's that much less we owe in real terms, and since we owe it to China, it's that much less their savings is worth.

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“ The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.”

Adam Smith , The Wealth of Nations 1776

"We have always known that heedless self-interest was bad morals; we know now that it is bad economics"
FDR's second Inaugural Address

Can't agree with the first part.

Have no problem supporting the second part and a more balanced level of savings/production in the USA and thus also a more balanced world economy is a good thing.

Unlike TSGracchus, I believe that a certain level of lower wages will be needed to achieve that, but what's so bad about it? Is there some sort of holly law/commitment to prevent any adjustment to a changed world?

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"Homo Homini Lupus"
Thomas Hobbes

Just out of curiosity, how come you don't agree with the first part? I mean, Japan does almost everything we do in terms of manufacturing and a healthy competition with them would be good for the consumers and workers of both countries!

Because I believe in general free trade and that it's the best for all countries.

By the way the current discussions about ending/restricting trade with China truelly remind me about the discussions about the American/Japanese trade relationships back in the 80's.

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"Homo Homini Lupus"
Thomas Hobbes

SOmething had to be done.
I am sensitive to this subject as many of you know I work in the printing industry.
China has all but crippled the North American paper industry by dumping the market illegally and with grossly unfair conditions.

I am not cpmpletely up on this story, but if it is like the paper industry....something had to be done.

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The essence of tyranny is the denial of complexity; where everything is made simple, and in that simplification the truth is lost.