Tag Archives: tariffs

Business/Economics, International, U.S.

Global Economic War: Obama attacks Argentina with Tariffs, another case of shooting yourself in the foot!

On March 26, 2012, U.S. President Barack Obama declared a trade war with Argentina.  This comes two days after Argentina sponsored a mission to increase trade relations with the U.S.

Obama says Argentine companies own two U.S. companies, Azurix and Blue Ridge, $300 million USD.  Obama dropped Argentina from “trade preferences”, which essentially put the South American country on the same standing as North Korea and Syria.

The two U.S. companies are owed money, but Argentine officials say every time they try to make a payment those U.S. companies refuse the terms of payment: “The U.S. trade authorities did not accept our proposal to resolve the disagreement of interpretation on the rules of ICSID [International Center Settlement of Investment Disputes]…”-Hector Timerman, Argentine Foreign Ministry

Obama’s decision goes into effect in 60 days.  Argentina is a member of CELAC, maybe that’s the real motivation behind Obama’s action?  The imposition of high U.S. tariffs on Argentina will affect at least $18 million USD in business with U.S. companies!

 

Business/Economics, International, U.S.

Global Economic War: China slaps U.S. made cars with tariffs, blames it on the anti-free trade action of the United States

“U.S. vehicles benefiting from subsidies and dumping on the China market have substantially damaged China’s auto industry.”-statement from Chinese Ministry of Commerce

General Motors and Chrysler will suffer the most from Chinese economic action against vehicles made in the United States.

Anti-dumping duties on GM vehicles are 8.9%, and 8.8% for Chrysler vehicles.

GM vehicles will also face anti-subsidy duties of 12.9%, and 6.2% for Chrysler vehicles.

The tariffs target cars with engines bigger than 2.5 liters, and made between December 201 through December 2013.

German car makers BMW and Mercedes will be hit with much much lower tariffs.

Chinese officials say the United States is violating the trade rules of the U.S. dominated World Trade Organization.

GM and Chrysler officials are not to worried.  Why? Because the majority of the cars they sell in China, are actually made in China (another reason for growing unemployment in the U.S.), and the tariffs do not apply to the cars they make in China.

 

Business/Economics, International

Global Economic War: China to make business deals with Austria, avoid tariffs

In an effort to avoid the outrageously high tariffs that many European Union members have put on Chinese products, Chinese President Hu Jintao is in Austria hoping to make new trade deals.

Xinhua News said “The two countries should also expand their mutually beneficial economic and trade relations and make concerted efforts to fight trade protectionism and encourage mutual investment.”

Many EU countries have enforced high tariffs on Chinese products, some have even boycotted Chinese products all together.  Austria is one of a few EU countries still open to Chinese imports.

In fact, Austria’s President Heinz Fischer, said Austria will play an active role in seeking the EU’s recognition of China’s full market economy status.

Over the past 40 years, the China-Austria relations have developed continuously, with China becoming Austria’s biggest trading partner, outside Europe, in 2010.

It’s interesting that many EU members are enforcing high tariffs and trade embargoes on Chinese products, yet are hoping China will bail them out of their economic mess.