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tariffs

From the Collections of The Henry Ford / Benson Ford Research Center

As President Trump and Chinese leaders swap threats of trade tariffs, we've heard a lot of talk about what a 25 percent Chinese tariff might mean to soybean farmers in the U.S. and specifically in Michigan, one of the top soybean-producing states.

Andrey Filippov 安德烈 / FLICKR - http://bit.ly/1xMszCg

The news from Beijing this week is that China's President Xi Jinping is "open" to reducing the 25 percent tariffs on foreign-made cars, trucks, and SUVs. The leader is also open to full foreign ownership of auto companies in China.

It sounds like a big deal, but is it?

Detroit skyline with GM building
Pixabay.com

 


 

One month ago, President Trump tweeted, "Trade wars are good, and easy to win."

Daniel Howes / Detroit News

Doesn’t matter to Donald Trump what his fellow Republicans say.

Or what Wall Street and America’s closest allies say.

The president wants tariffs on imported steel and aluminum, and this week he got them, along with some last-minute carve outs for those national security threats known as Canada and Mexico.

BERNT ROSTAD / FLICKR - http://bit.ly/1xMszCg

 

President Trump has authorized his planned tariffs on imported steel and aluminum.  

(And a note: Stateside aired this conversation just before President Trump adopted the tariffs.)

Billy Wilson / FLICKR - http://bit.ly/1xMszCg

Today, the White House rolled out President Trump's planned tariffs on imported steel and aluminum. 

(Stateside aired this conversation just before this news broke.)

But Detroit News business columnist Daniel Howes has a three-word warning for the President: “Unintended consequences loom.”

Ford Europe / FLICKR - http://bit.ly/1xMszCg

President Trump is digging in on his promised tariffs on foreign aluminum and steel: 10% on imported aluminum, 25% on imported steel.

That announcement sent the stock market tumbling and got our European and Canadian allies talking about possible trade wars, and retaliatory tariffs on American-made products.

And the pushback from the president’s own party is growing: House Speaker Paul Ryan has split with the president and opposes the tariffs, and Congressional Republicans are figuring out how to block them.

Tracy Samilton / Michigan Radio

The United States has filed a complaint with the World Trade Organization against China over tariffs on U.S.-made vehicles.

The Obama administration says China unfairly placed duties of up to 22 percent on U.S.-made vehicles that are exported to China.

The tariffs apply to larger passenger cars and SUVs.

American politicians are vowing to fight new Chinese tariffs on large U.S. made cars and SUVs.    

In 2010, the U.S. won a Chinese tire-dumping complaint before the World Trade Organization. 

China has complained about U.S. poultry dumping.  The U.S. is investigating whether China subsidizes solar panels. 

Now the fight is over cars.  Republican Congressman Kevin Brady of Texas heads a trade subcommittee.