A few weeks ago the US government slapped import duties on Chinese manufactured tires. China shot back by launching and investigation through the World Trade Organization (WTO) of US car exports to China.
Now we have round two. The US has imposed import duties of up to 99% on $2.6 billion dollars of Chinese pipe imports.
The ruling is temporary, however, US Customs will start collecting cash or bond deposits on imports. A final ruling will be made in March. Meanwhile, President Obama plans his first visit to China within a few weeks.
The US has asked for a WTO disputes panel to investigate Chinese restrictions on exports of specialized raw materials used in industry. It was joined by the European Union and Mexico. The allegation is that China's restraints on some raw materials were driving up the cost of end products.
In another development, a dispute on US pork exports to China was resolved in favor of the US.
What does all of this mean? The US and European economies are still mired in stagnation with high unemployment. Businesses are complaining to elected officials to take action against China's unfair dumping practices. The result is a growing set of protectionist rulings against China.
Will these trade wars help or hurt the US?
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Reader Comments (Page 1 of 1)
11-08-2009 @ 12:48AM
ij70 said...
We are hurting so badly, this can only help.