Smoot-Hawley Part Deux?

The economic genius of the Obama Administration is beautifully showcased again as it imposes harsh tariffs on Chinese tire imports. The main reason for doing so is to appease Obama’s cronies in the Steelworkers Union, who cited a dramatic rise in Chinese tire imports. The new tariff is an additional 35% on top of an already established 4%.

China is rightfully outraged and they are ready to fight back. With a rampant display of arrogance, something not foreign to the Obama administration, the White House responded that  “Retaliation would be inappropriate, as the United States acted entirely within the bounds of trade laws and within the safeguard provision that China itself agreed to upon accession to the World Trade Organisation.” Now that’s a childish mentality if I’ve ever seen one. It’s essentially applying the old-fashioned rule of “no tag backs” to trade policy. Genius.

I’m aware that history means little, if anything, to the Obama administration, but maybe this time they will learn. After all, a slew of tariffs played a huge role in plunging the US into the Great Depression. Unfortunately for us, a trade war could be right around the corner and the US might be dragged even further down.

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