From the articles, the topic is about trade relationship between US and China. In Sept 2009, President Obama imposed a 35 percent tariff on tires imported from China. In response, China’s Ministry of Commerce announced to impose anti-dumping tariffs on imports of chicken feet sent from the United States to China.
Although the aim of President Obama’s new measures is to protect the domestic economy and jobs, I highly doubt this will benefit either one in the long run. By enacting this new tariff Obama is hurting the already cash strapped consumers; reducing supply of cheaper imported tires will result in price increases and hence disadvantage consumers. Consumers had determined that the Chinese products are not only acceptable, but also provide better value for the money spent. Moreover, the United States used to be China’s most vital trade partner, however the US has lost its status and now Europe is China’s largest trading partner. Should a trade war erupt US will have the short end of the stick, and the American economy could see a much steeper economic decline.
I do not necessarily agree with China’s labor laws or believe the Chinese have the best products, but government intervention in the free market is almost never a good idea. It’s simply a matter of survival of the fittest, let the free market and consumers decide who provides the best value. Intervening in this process will have dangerous consequences. Obama’s protectionism measures will eventually isolate the US, potentially causing trade wars and lead the US economy to a potential depression.
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