The two articles,"U.S. Adds Tariffs on Chinese Tires" and "Chicken Feet: A Symbol Of U.S.- China Tension," which indicates the trade war between the two nations. In this article, President Obama announced a 35% tariff on automobile and light-truck tires imported from China in September, 2009 to preserve jobs in the Unites States. China had major market share in the U.S. tire industry, a $1.7 billion dollar market. American imports of Chines tires tripled by 215% between 2004 and 2008, and China's share of the American market grew to 16.7% from 4.7%. Four American tires factories closed and about 4,500 tire production jobs were lost. Therefore, as a protectionist measure, the U.S. government imposed a 35% tariff rate on Chinese tire imports.
Chinese government announced imposing tariffs ranging from 43% to 105% on imports of chicken parts from the U.S. The United states is the major exporter of chicken feet to China. In 2008 the U.S. exported $677 million worth of chicken to China. It is very important for a government to be very careful while taking consideration in imposing those tariffs on specific product. Imposing a tariff while importing a product may have a vice versa effect while exporting them.
This trade war between both the U.S. and China will directly impact the consumers and the business in both countries. Tariff rates will create inefficiency in the economy for both countries. U.S. and China are great trading partners. In my opinion, both countries should have to renegotiate the trade policy and find the better solution to solve the problem. Avoiding the trade war is the best way to keep good relation between two countries and no one will suffer or lose from the trade war.
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