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Tariffs on Tire Imports China

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In Chapter 8 of your International Trade textbook, there is an application of the material on pages 251 - 256 where you are
to apply what you have learned from this chapter to U.S. tariffs on steel and tires.
In this application, please provide a detailed step by step account and then make your decision. Consider that the U.S. government did act a certain way but please apply if you would act the same way or differently and explain why in this case study assignment.
Your case study should be at least 500 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

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Solution Summary

This posting gives you a step-by-step explanation of case study related to imposition of tariff on tires imported from China. The response also contains the sources used.

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In accordance with BrainMass standards, this is not a hand in ready case study but is only background help.

Step 1
On September 11, 2009, President Obama was requested by the United Steelworkers union to impose a tariff imported from China. This tariff was discriminatory because it meant import tariff only on tires imported from China. Discriminatory tariff was imposed to avoid an all out tariff war that had occurred earlier in case of tariff on steel.

Step 2
There were several implications of the discriminatory tariff. Such a tariff violated the most favored nation principle of the WTO and the GATT according to which all members of the WTO should be treated equally. Another important issue was that tire companies did not join in the request for imposing tariffs against China (a). The tire companies refrained from making such a request because these were multinational companies which had operations in China and other countries. These ...

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