A Tariff on Tires from China

The New York Times article China Denounces New Tire Tariffs shows how campaign slogans like "Politics of Hope" give way to protecting special interest groups once the election ends and policy making begins. The relevant special interest group is the A.F.L.-C.I.O. and the dubious policy encouraged by that organization is the imposition of a 35% tariff on Chinese tires for cars and light trucks. The Chinese are complaining about protectionism and violations of international law. Obama complained strongly about U.S. policies and international laws where detained suspected terrorists were concerned. Yet international laws affect a broader array of issues than that.

What is particularly disturbing is the sorry history of protectionism. Historians note that the Smoot-Hawley Tariff Act was a contributing factor bringing about the Great Depression. Consumers suffer when tariffs are raised to protect domestic enterprises and retaliation often comes at the expense of productive American exporters.