Need To Get A Grip On Tires

Derek Scissors / September 17, 2009

There is one, and only one, notable development in the Chinese tires case. The rest is old news, non-news, or nonsense.

Why does anyone care about this case? It’s certainly not because of the amount of trade affected. Replacement tires constitute a drop in the bucket of US-China trade.

It’s not because it will dent US unemployment. Three years of tariffs on tires from one country will do almost nothing for production in the US.

It’s not because of the potential Chinese reaction. The level of grassroots interest in this is nothing like the level needed to actually worry the Party. The Ministry of Commerce will use domestic politics to justify demands or actions, but it is a negotiating tool in this instance, nothing more. (more…)