On the eve of September 11th, 2009 the United States fired the first shot in the trade war with China.  That was the day that the President signed an order to increase the tariff on imported Chinese tires by 875%!  With a swift stroke of the pen, the tariff went for 4% to 35% and the trade war had begun.  China responded almost immediately accusing Washington of “rampant protectionism”.  According to Beijing, the action is not only ill thought out in a time of economic mayhem, but also violates WTO rules and goes against specific promises made at the G20 summit this April.

China has promised a retaliatory action and is currently scrutinizing the imports of American poultry and autos.  The United States claims that any retaliatory effort would be “inappropriate”.

In signing the order, the President was responding to a petition from the United Steelworkers Union who was concerned about not being able to be competitive with Chinese tires.  The President stated that the new tariffs would save the jobs of 7,000 Americans.

What is interesting in all this is that the American consumer is left out of the discussion.  The consumer wants choices and value.  By implementing this order, the President is insisting that the American people pay more for their tires.  He has removed a low cost choice from their available options.  In the end, it is the consumer who pays more, buys less, and suffers the most.