Obama Opens Car Front In Chinese Trade War
In Ohio today, President Obama will announce the latest World Trade Organization suit against China, this time addressing "unfairly" imposed duties on U.S. auto exports. The Administration will argue that these duties violate international trade rules. Whether or not China will reply that buying US 10 year paper at 1.6% is also unfair remains to be seen. But at least someone is happy. As reported earlier, ADP reported just 4,000 manufacturing jobs were added in the US in the last month: these are the same people who are supposed to be doubling US exports in Obama's latest 5 year plan. Good luck. Anyway, here is the take of the Alliance for American Manufacturing to this simplistic attempt to trade union for long-term stability with America's largest trading partner.
"American workers and manufacturers strongly support President Obama’s decision to launch a trade enforcement action against China’s unfair auto tariffs. The deck in China is stacked against American automakers and workers, and this case will help to level the playing field.
"Less than one percent of the estimated 18 million vehicles sold in China last year were made in America, despite the fact that the Detroit Three brands are growing more popular every day.
"This Administration has a stellar record on enforcing America’s trade laws and has not hesitated to take action to defend American workers—today’s announcement is further proof of that. But, there is more work to do.
Uhm, what deck? And the administration has a "stellar record" on somethning? One learns something every day. And considering that more than half of GM's cares are sold in China, once China retaliates to this provocation, it is virtually assured that the bailed out labor union car maker will see its stock price plunge to new post "IPO" lows in the next 2-4 months.
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