Thursday, September 30, 2010

U.S. should continue to use tariffs as a method of controlling trade

           The U.S. should continue to use tariffs as a method of controlling trade. I agree if their purpose use tariffs as a method to help and protect or reserve American job, also protects American companies from unfair competition. However, real reason that the government prohibits some imports and taxes is to rewards the industries with the most political influence.


                                            "Phoenix Talons"
           
            The article “Chicken Feet”

The result of investigation of the China Animal Agriculture Association found that “the import of American chicken parts made the competition in the domestic market very severe”. China’s Ministry of Commerce announced imposing antidumping tariffs ranging from 43.1%-105.4% on imports of chicken parts from the U.S.  Also, President Obama fights back by announced tariffs of up to 35% on tire imports from China. Plus Obama signaled that the U.S. would also take a tougher stand on Chinese currency, which economists say is undervalued by as much as 40% driving down the price of Chinese exports.

            In my perspective, China and The U.S. though we are punishing a foreign government for hurting us by imposing tariff to each other. But the foreign politicians don't care very much that we restrict imports from their country. In fact, they may like it. They are politicians, not producers. They don't export anything expect speeches. Our import barriers just give them an excuse to subsidize their favorite exporters or otherwise increase their power.The real victims of our government's retaliation are you and the foreign workers. The foreign workers don't get to sell to you, and you don't get to buy what you want at the lowest price.

1 comment:

  1. I agree with your comments. As we discussed in class, countries often pursue their own sef-interests which may not enhance globalization. The consumers will likely be the parties who suffer the most harm in a trade war.

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