Snap-O Fact #27

President Obama placed a 35% tariff on Chinese tires and other products after China was found to be illegally “dumping” exports below cost (2009). 

* Note: Clinton, Bush I, and Reagan all refused to “get tough” on China’s predatory trade practices; Bush II refused four times during his presidency. 

During his campaign in 2008, President Obama has promised to “get tough” on China because of its illegal dumping and unethical human rights issues. Different from Bush and Reagan, Obama actually keeps his promise by placing a 35% tariff on Chinese tires and a few other products the first year, 30% second year, and 25% third year. Originally, “the federal trade panel recommended a 55 percent tariff in the first year, 45 percent in the second year and 35 percent in the third year,” according to MSNBC, but Obama has slightly decreased it to a lower tariff rate. Although some critics may call this policy protectionism and anti-world trade, it actually helps American labor union from being hurt by China’s dumping, which eventually led to the joblessness of many steel workers.

Sources:

http://www.msnbc.msn.com/id/32808731/ns/business-world_business/t/obama-imposes-tariffs-chinese-tires/#.Ttg7nFZdDLQ

http://www.huffingtonpost.com/2009/09/11/obama-imposes-tariffs-on-_n_284271.html 

http://www.cbsnews.com/stories/2009/09/11/business/main5305068.shtml

http://www.nytimes.com/2010/09/30/business/30currency.html?pagewanted=all

http://online.wsj.com/article/SB125271824237605479.html

http://money.cnn.com/2009/10/07/news/economy/obama_china_tires_tariff.fortune/index.htm