Monday, September 14, 2009

Protectionism Revisited

A classic tit-for-tat trade situation seems to be developing. Lets hope the Obama administration decides to re-embrace free trade. For an update click here.

President Obama approved the tariffs Friday to slow the rapid growth of U.S. imports of Chinese-made tires that have been blamed for the loss of thousands of American jobs. That drew an accusation of trade protectionism from Beijing.

Yao's statement called on other governments to oppose protectionism.

The White House says Obama acted under a provision in the U.S.-Chinese agreement on Beijing's WTO membership that allows Washington to slow the rise of Chinese imports to allow American industry to adjust.

Obama's order Friday raised tariffs for three years on Chinese tires — by 35% the first year, 30% the second and 25% the third.

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