American Imposed Tariffs On Tire Imports From China Essay

1640 Words Nov 17th, 2015 null Page
While trade barriers have reached historically low levels, an increasing number of countries are concerned about job losses as a result of the trade liberalization. An issue is well represented in the recent U.S trade policy agenda. This report will focus on the case study regarding the American imposed tariffs on tire imports from China.
In September 2009, Obama issued a three year tariff on tire imports from China in the amount of 35% in the first year, 30% in the second year and 25% in the third year, with each year on top a general 4% import tax. China interpreted this as a serious case of protectionism. First of all, it will review the data on the US and Chinese Tire markets. It will explore the adverse consequences arisen from the issue between the countries as a result of not very successful trade dealing. Secondly this paper is intended to analyse the situation by looking for a recent empirical analysis such as data statistics of 2015 on the subject to critically evaluate what is the real influence of the implanted tariff it has on both countries. In addition to the properly analysed data, it will shift to look at a couple of relevant economic theories to support certain arguments provided. Ultimately, after all the findings are summarised, it can be noticed as vital to consider whether or not tariffs imposed by the USA were actually useful for the United States and how harmful it was for the Chinese economy. To then conclude the report, there will be a final…

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