Retaliation by China?
In a previous entry possible effects of the Obama administration's imposition of a 35% tariff on Chinese tires for cars and light trucks were alluded to. The Smoot-Hawley Tariff Act was a major contributory cause of the Great Depression but historic lessons are not long remembered.
The Cost of Trade 'Enforcement' is a Wall Street Journal article with an ominious news item from China. The Chinese Ministry of Commerce imposed preliminary antidumping duties on imports of nylon 6 from some nations including the United States. Nylon 6 is found in varied products. They include socks and toothbrushes. American companies were hit with the harshest duties. U.S. corporation Honeywell and a U.S. unit of Germany's BASF were given 36% and 30% increases, respectively. So is this the start of a trend like the one preceding the Great Depression or will advocates of free trade be able to stem the obvious protectionist sentiment here and abroad?
The Cost of Trade 'Enforcement' is a Wall Street Journal article with an ominious news item from China. The Chinese Ministry of Commerce imposed preliminary antidumping duties on imports of nylon 6 from some nations including the United States. Nylon 6 is found in varied products. They include socks and toothbrushes. American companies were hit with the harshest duties. U.S. corporation Honeywell and a U.S. unit of Germany's BASF were given 36% and 30% increases, respectively. So is this the start of a trend like the one preceding the Great Depression or will advocates of free trade be able to stem the obvious protectionist sentiment here and abroad?
Labels: Business News, Government Policies, International Trade
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