China Strikes Back Against U.S. Tire Tariff

Unexpectedly retaliating against a punitive new U.S. tariff on tires, which President Obama levied last week to combat the outsourcing of American jobs, China has taken steps to slap tariffs on American exports of automotive products and chicken meat. China's move came after a week of nationalist vitriol that followed word of the tire tariff and increased tensions between two nations trying to work together on the global economy and the North Korean nuclear threat.


The tire tariff signaled Obama's intent to keep his word about protecting American jobs, many of which have moved to China and left employment holes in U.S. manufacturing industry. The trade deficit with China is a record $268 billion; China exported $1.3 billion in tires to the United States in the first seven months of 2009, while the United States shipped about $800 million in automotive products and $376 million in chicken meat to China, the New York Times reported Monday. Experts say a trade dispute of this magnitude could turn ugly very quickly, especially as rising nationalism in China makes it difficult for leaders there to ignore anti-American economic sentiment.

China Moves to Retaliate Against U.S. Tire Tariff [New York Times]