movepleases - SEPTEMBER 15, 2009 Move Pleases Labor,...

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Unformatted text preview: SEPTEMBER 15, 2009 Move Pleases Labor, Complicates Policy By PETER FR ITSCH WASHINGTON -- President Barack Obama's decision to side with the United Steelworkers and impose temporary tariffs on Chinese car tires implies a potentially costly trade-off for the administration, trade and political experts said. In the near term, the move should consolidate the support of blue-collar workers and union leaders for Mr. Obama's ambitious legislative agenda at a critical moment. The cost: a potential wave of fresh U.S. industry complaints against Chinese imports that could force more uncomfortable choices on an administration walking a fine line between support for American workers and free trade. In addition, it is expected that U.S. consumers who buy low- end Chinese tires will have to pay more as producers try to fill the void in that part of the market. The tire case, in which the United Steelworkers union argued that a surge of Chinese tire imports cost American jobs, wasn't supported by tire makers, most of whom also make tires in China and had already abandoned making in the U.S. the low-cost tires in question. The complaint was made under a special section of trade law that doesn't oblige industry to prove unfair trading practices; simply that a surge of Chinese imports has hurt U.S. industry. The tariffs -- a sort of time-out to allow U.S. companies to adjust -- will be in place for three years before expiring. Mr. Obama's tire announcement, which was made late Friday evening, came just as the administration is about to lean heavily on organized labor to support the administration's health- care proposals....
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This note was uploaded on 03/30/2011 for the course WORK 383 taught by Professor Shurman during the Spring '11 term at Rutgers.

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movepleases - SEPTEMBER 15, 2009 Move Pleases Labor,...

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