China Puts Huge 22% Tariff on U.S. Autos

China just slapped a huge 22% tariff on some U.S. auto imports. Reuters:

China will impose punitive duties of up to 22 percent on large cars and SUVs exported from the United States, China's Commerce Ministry said on Wednesday, the latest in a series of trade disputes between the world's two largest economies.

Why? Because China wants to develop it's own domestic luxury SUV industry. China already imposes an outrageous 25% tariff on U.S. truck imports. This makes the total tariffs on SUVs 47%!

While the New York Times claims China is skimpy sales, we beg to differ. GM sells more autos in China than in the United States.

What this really means is GM and other SUV U.S. manufacturers will move production offshore....to China. In other words, to sell SUVs, trucks in China, this outrageous tariff will force U.S. manufacturers to offshore outsource even more jobs simply to continue selling their products in that country and gain access to China's markets.

China's claim the U.S. is dumping SUVs in China is absolutely pure fiction. As it is, a 25% tariff on trucks is obscene considering China is killing this country with imports and the second largest economy in the world.

Obama Signs Deal to Allow Mexican Truckers Onto U.S. Highways

In yet another blow to U.S. workers, the Obama administration has signed a deal for Mexican truckers to operate inside the United States.

The news headlines all sing hallelujah over some soon to be disappearing punitive tariffs Mexico put on 99 U.S. products simply because we wouldn't let Mexican truckers, instead of American ones, on U.S. highways. There is no mention in the major press of the cost to American workers, the increased illegal drugs entering the country, the illegal immigrants being smuggled into the U.S., and the wages and jobs lost. Nor is there anything mentioned about border security in the press, or even challenging Mexico for being in violation of NAFTA by their attempts to subvert U.S. labor law in the first place.

The teamsters have been fighting this tooth and nail and just came out swinging. Mexican truckers have lax safety standards and much lower wages, yet will be allowed to work in the United States, by driving on American roads, displacing U.S. truckers.

Teamsters General President Jim Hoffa today castigated the U.S. Department of Transportation for agreeing to open the border to long-haul Mexican trucks. Opening the border endangers America’s highway safety, border security and warehouse and trucking jobs.

WTO Rules Against China on Tire Tariffs, China Currency Manipulation Amendment to Senate Tax Bill Introduced

The WTO has ruled against China and in favor for the United States on Chinese tire import tariffs.


World Trade Organization judges rejected China’s complaint that U.S. tariffs on Chinese car and light-truck tires violate global trade rules, saying the Obama administration “did not fail to comply with its obligations.”

President Barack Obama announced the three-year duties on $1.8 billion of tires from China in September 2009, acting on a complaint by the United Steelworkers union, which represents 15,000 employees at 13 tire plants in the U.S. The union said Chinese tire exports to the U.S. tripled from 2001 to 2004 to 41 million and called for a cap on annual imports of 21 million.

China screamed protectionist, which the WTO rejected. The tariff schedule for Chinese tires was 1st year: 35%, 2nd: 30%, then 25%. This is a huge deal, a major victory because the WTO allowed tariffs as a trade remedy. It's also important that just because someone name calls something protectionist, does not make it illegal under the WTO.

Meanwhile Indian imported steel pipe is being dug up because it's defective and Senators Sherrod Brown and Olympia Snowe have introduced an amendment to put tariffs on China for currency manipulation.

The Headlines on Trade with China are Ridiculous

Because the United States showed just a little sign of life and challenged China's dumping of tires in yet another unfair trade practice, the main stream media screams absurdities.

Take this headline Treasuries Gain as U.S.-China Trade Tensions Threaten Recovery and this one Yen Rises Versus Euro on Signs Trade Protectionism Increasing .

What really happened? China was dumping tires to U.S. markets in order to destroy and capture yet another good by producing under cost, flooding the market to drive down prices temporarily and plain put U.S. tire makers out of business.

Just How Intensely Do Other Countries Demand U.S. Jobs? - Mexico Does Tariffs When Denied

When is the United States going to make it clear, once and for all, U.S. jobs and workers are not for trade?

Because Congress finally stopped Mexican trucks from entering the United States, which obviously would labor arbitrage U.S. truckers in addition to security and safety issues, Mexico is retailiating by tariffs.

Mexico slapped tariffs on 90 American agricultural and manufactured exports on Monday in retaliation for Washington's move to block Mexican trucks from using U.S. highways.

Mexican Economy Minister Gerardo Ruiz said about $2.4 billion worth of exports from 40 U.S. states would be affected and that his government would soon publish a list of them.