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.

On February 18, 2009 the Port of Long Beach will begin assessing cargo owners a “Clean Trucks Fee”.  These funds will be used to help trucking companies finance the new clean fuel trucks that the Port has required them to utilize.

I can appreciate the Ports efforts to protect and improve the environment.  Plus, the state has mandated a reduction in pollutants from the Port and its customers before any additional state funding can be obtained.  So, I understand the motivation behind the announcement.  However, I question the timing of the additional fee.

Here’s the scenario as I see it:

• The recession has reduced consumer spending and the ports have seen a corresponding reduction in volume.
• The West Coast ports are losing what business is left to the East Coast ports.
• The completion of the Panama Canal expansion will only exacerbate that problem.
• The Ports of Long Beach and LA already levy some of the highest per container fees in the country.
• Finally, a number of their competitive ports are lowering fees to weather the economic storm. (NY/NJ, Charleston, etc.)

Is this really the time when you want to make it more expensive for your clients to use your service and facilities?