Obama is perposely starting a trade war it appears, appeasing the steelworkers union.
"The U.S. placed tariffs starting at 35 percent on $1.8 billion of tire imports from China, backing a United Steelworkers union complaint against the second-largest U.S. trading partner. http://www.bloomberg.com/apps/news?pid=20601087&sid=a9igRzOC55wE
Let’s not forget -—> AIG Brouhaha Takes Focus Off Real Issues
By CHARLES KRAUTHAMMER | Posted Thursday, March 19,
If you thought the AIG hysteria was a display of populist cynicism directed at a relative triviality, consider this:
There are more than 6.5 million trucks in the United States. The program Congress terminated allowed 97 Mexican trucks to roam among them. Ninety-seven!
Shutting them out not only undermines NAFTA. It caused Mexico to retaliate with tariffs on 90 goods affecting $2.4 billion in U.S. trade coming out of 40 states.
The very last thing we need now is American protectionism. It is guaranteed to start a world trade war. A deeply wounded world economy needs two things to recover: (1) vigorous U.S. government action to loosen credit by detoxifying the zombie banks and insolvent insurers, and (2) avoidance of a trade war.
Free trade is the one area where the world indisputably turns to Washington for leadership. What does it see? Grandstanding, parochialism, petty payoffs to truckers and a rush to mindless populism. Over what? Over 97 Mexican trucks — and bonus money that comes to what the Yankees are paying for CC Sabathia’s left arm.
http://www.ibdeditorials.com/IBDArticles.aspx?id=322353578201727
Mexico releases list of U.S. products that will see higher tariffs
http://www.freerepublic.com/focus/f-news/2209593/posts