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Obama Opens Car Front In Chinese Trade War

Tyler Durden's picture


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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Thu, 07/05/2012 - 11:30 | 2589015 GeneMarchbanks
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Only question was who leads and who follows in this tragic tango!

What is the WTO?

Thu, 07/05/2012 - 11:53 | 2589131 goldfish1
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Published: December 20, 2011

"...the Japanese automaker Honda is crossing the threshold by importing subcompact cars into Canada from one of its plants in China. This month, Honda Canada began receiving its smallest model, the Fit, from China..."

Thu, 07/05/2012 - 12:24 | 2589213 sushi
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Less than one percent of the estimated 18 million vehicles sold in China last year were made in America . . ."

This is true.

Most of the 18 million vehicles sold in China last year were made in China.

By G.M.

By Ford

By Chrysler

By Volkswagen

Why would the Chinese buy a car made in Detroit when they can buy the same car made in Shengzun?

This story is one more of "There is an election on so we better baffle the voters with a ton of bullshit so they don't figure out how we keep pulling rabbits out of their hats and dollars out of their pockets."

Thu, 07/05/2012 - 11:29 | 2589020 Sudden Debt
Sudden Debt's picture



Thu, 07/05/2012 - 11:29 | 2589022 Cognitive Dissonance
Cognitive Dissonance's picture

Obama translation - "We need a good (trade) war to distract the plebs from their (coming) misery."

Thu, 07/05/2012 - 11:37 | 2589055 Bicycle Repairman
Bicycle Repairman's picture

Obama translation - "We need to appear to support the working man as we need the working man's vote in November."

Thu, 07/05/2012 - 11:39 | 2589070 TrainWreck1
TrainWreck1's picture

Obama translation - "Teleprompter made me do it."

Thu, 07/05/2012 - 11:46 | 2589100 OutLookingIn
OutLookingIn's picture

Free? You're not free.

You have owners. They own you.

Thu, 07/05/2012 - 12:19 | 2589191 Cognitive Dissonance
Cognitive Dissonance's picture

What amazes me about this George Carlin video is that he's telling the 'public', his audience, that "the public sucks". And the public, his audience, is laughing and cheering that they were just told that they suck.

Of course this can only happen if most, if not all, of the audience, the public, considers themselves to be special, to not be like any other person in this so-called "public". Thus Carlin is not talking about them, but about all the others, the other "public" I suppose.

Forget Jedi mind control imposed from outside. This is self imposed Jedi mind control and the ultimate art of self deception. And why we are all so easily controlled. We believe we are not being controlled, but rather just those other people over there. They are the ones being controlled. 

You know, the "public".

Fri, 07/06/2012 - 00:34 | 2590946 krissstofer
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Your name is extremely apropo to the subject matter. I can only, in giving his audience the benefit of the doubt, assume that they may have felt that their being there, paying to hear him speak, was indication enough of their distinct nature from the rest of them rabble.

Thu, 07/05/2012 - 11:50 | 2589112 Sofa King Confused
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I call bullshit on all of it....why would they export cars from the US when Ford and GM have plants in China to make cars


Edit: And at much, much lower labor costs

Thu, 07/05/2012 - 12:22 | 2589208 Cognitive Dissonance
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Because Ford and GM have automobile plants in China that essentially make "Chinese" cars. The more affluent Chinese want American cars, not Chinese cars made by American companies in China.

Thu, 07/05/2012 - 15:54 | 2589990 TheGardener
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Hhmm, some original American cars are cool for sure from an aesthetic marketing point of view, but ever checked who was to made them in Detroit?

87% banana , formerly displaced plantation workers made sure quality and appearance stayed at sub-Russian levels.

Most of Europe never got over that sorry point of me-too cars, only the Japanese ever got close to challenging the real German thing but retreated when the real thing churned out every shit too in every sub market section . Anyone driving some shitty non V8 vehicle please feel offended, no overrunning of Zombies for you.

Surely early American German settlers included plenty or all of gunsmiths` but American small arms suck too these days, shitty shafting and poor trigger action are the hall and trademarks of otherwise reasonably made guns that just
keep up with 19th century quality expectations.

And this I wrote in praise of America, anything else except
horse meat is pure BS that gets exported.Anything short of Germanic looking virgins , I see nothing Europe would trade
with her former partner in crime once the EURO/FDR scam collapses.

This makes Angela bitch look cool, without shades.

Thu, 07/05/2012 - 11:33 | 2589037 magpie
magpie's picture

Blame Europe didn't last long.

Thu, 07/05/2012 - 11:37 | 2589061 GeneMarchbanks
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Thu, 07/05/2012 - 11:33 | 2589040 RacerX
RacerX's picture

Looking for reelection campaign funds from .cn?

Thu, 07/05/2012 - 11:49 | 2589043 LawsofPhysics
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When real goods and services stop crossing borders...

Thu, 07/05/2012 - 11:35 | 2589045 Temporalist
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In Oceania we are up to our ninth 3-year plan.

Thu, 07/05/2012 - 11:35 | 2589046 the not so migh...
the not so mighty maximiza's picture

China lends us the money so we can pay their tariffs, whats the big deal?

Thu, 07/05/2012 - 11:37 | 2589060 tarsubil
tarsubil's picture

The Empire of Lies does not consider those terms "fair".

Thu, 07/05/2012 - 11:37 | 2589052 moskov
moskov's picture

Chinese can use more dollar for RMB swaps

Thu, 07/05/2012 - 11:50 | 2589115 LawsofPhysics
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Anyone who trades currencies can.  Do you have a point?

Thu, 07/05/2012 - 11:37 | 2589053 Dr. Engali
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How long before the shooting starts? September? October? We need a good false flag to get this ball rolling.

Thu, 07/05/2012 - 12:00 | 2589133 i-dog
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The false flag that triggers a "state of emergency" will occur in America (and could be anything from terrrrsts, to bank 'failure', to disease 'outbreak') ... and, yes, in September or October (IMO). After the Olympics and before the election gets cancelled.

China will not be shooting anyone (unless they go to China to get shot at!). China is in on the globalist gig.

Thu, 07/05/2012 - 11:37 | 2589056 TrainWreck1
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The synergy of Obama's Harvard Intellect and the legendary UAW work ethic will be tough for the Chinese to overcome.

Thu, 07/05/2012 - 11:38 | 2589065 Temporalist
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Legendary, mythical, whatever...

Thu, 07/05/2012 - 11:43 | 2589091 francis_sawyer
francis_sawyer's picture


In this case, perhaps he needs to apply a little "Occidental College" intellect...

Stop sending them Volts & start sending them "Choom Wagons" & maybe sales will pick up...

Thu, 07/05/2012 - 11:39 | 2589059 Clint Liquor
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I hope China doesn't retaliate by raising the prices of everything at WalMart.

Thu, 07/05/2012 - 11:41 | 2589082 TrainWreck1
TrainWreck1's picture

An army of enraged perspiring WalMart shoppers would not paint a pretty picture.


Thu, 07/05/2012 - 12:03 | 2589148 i-dog
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Oh, thanks very much! I'm not looking forward to that image reappearing in tonight's dreams....

Thu, 07/05/2012 - 12:12 | 2589178 Temporalist
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1) Who would commission an army of sweaty Walmart shoppers to paint a picture?

2) Why would anyone dream about it?

Thu, 07/05/2012 - 12:13 | 2589179 TrainWreck1
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Check out side-butt for a new low

let's see, record heat this week, no power, oh yeah, I'm off to see the sights at Wally World

Thu, 07/05/2012 - 11:38 | 2589064 midgetrannyporn
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the usa lost the trade war decades ago. of course the chinese had help from some uber-rich maggots in the usa.

Thu, 07/05/2012 - 12:00 | 2589142 A Nanny Moose
A Nanny Moose's picture

We call them politicians. We elected them.

Thu, 07/05/2012 - 11:40 | 2589075 The Duck Stops Here
The Duck Stops Here's picture

He should retaliate by putting Tariffs on everything China sends to the US... then again raising the cost on everything at Wal-mart before an election probably isn't a good idea

Thu, 07/05/2012 - 11:40 | 2589077 pods
pods's picture

What is the Mandarin translation for "Eat your peas?"

Thu, 07/05/2012 - 11:42 | 2589084 DeadFred
DeadFred's picture

The crunch is coming and it plays better with the masses if some bunch of foreigners can get the blame, playing with fire to make it the Chinese though. This administration does have a top notch reputation for it's corruption

Thu, 07/05/2012 - 11:42 | 2589086 Catullus
Catullus's picture

It's only unfair when the tariffs are placed on your exports. Meanwhile never a peep from the unions when puts the tariffs up on imports. Peak hypocrisy.

Thanks for "protecting" us from lower prices, unions! Oh. And your pension is probably broke because you keep electing politicians that don't prosecute fraud. Enjoy.

Thu, 07/05/2012 - 11:42 | 2589087 Cursive
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Uh...Amerika has decoupled from the ROW, so this shouldn't matter. /sarc

Thu, 07/05/2012 - 11:44 | 2589095 Pure Evil
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And once the TPP is in place he'll have much more leeway after he's re-elected to ship the remaining auto manufacturing jobs to China and there won't be any more need for unfair Chinese tariffs.

TPP = Trans Pacific Partnership

Thu, 07/05/2012 - 11:46 | 2589102 Everybodys All ...
Everybodys All American's picture

Obama pandering for votes as usual. What a pathetic excuse for a leader.

Thu, 07/05/2012 - 11:50 | 2589113 OutLookingIn
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Too many volts sitting around. And China won't let any more in.

Shocking! Absolutely shocking. Hoo Flung Dung say 'sue me!'

Thu, 07/05/2012 - 11:50 | 2589114 PLove
PLove's picture

German police take of helmuts and march with German citizens against Rothschild European Central Bank.

Thu, 07/05/2012 - 11:50 | 2589118 laomei
laomei's picture

Quite a few countries slap duties on imported cars.  China does it based on engine size and a big chunk of it is to moderate the car explosion over here.  Our cars easily cost at least twice what you pay for them in the US... and we don't finance, we all buy in cash up front.


As it stands right now, China doesn't want more cars on the roads, seeing how the incentives and tax benefits were killed off for manufacturers.  Pont remains the same, if you want to sell in China and not get hit with duties, you have to do a JV and build them here.  Nothing crazy about that at all to be honest.  Deal with it you whiney little shits.

Thu, 07/05/2012 - 12:18 | 2589194 shutdown
shutdown's picture



Oh, my! It appears as though the sleeping dragon has finally awakened! 

Thu, 07/05/2012 - 14:09 | 2589624 Gavrikon
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You mean we don't build them there already?  Well, let's open a factory and within a year or two we'll be buying Buick clones.

Thu, 07/05/2012 - 14:32 | 2589665 Jam Akin
Jam Akin's picture

The duties force foreign OEMs into doing JVs with local partners who can then rip off their intellectual property while benefitting from the local manufacturing value add before kicking their "partners" to the curb.  Nothing crazy at all about that is there, my friend?


Your point about more cars on the road is total nonsense.  The Chinese people want cars as they move up the ladder economically and China's regional and local officials want to produce or retain jobs.  You're as full of crap as the proverbial Christmas goose.

Thu, 07/05/2012 - 11:52 | 2589129 SmoothCoolSmoke
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Stocks start down Monday.  Here's why:

1. NFP big beat

2. NFP beat shelves QE

3.  Bad earnings roll in.

SP sinks to 1170 just before, yep, Jack-ass-son Hole starts.  Bernankie goes QE, stocks riseuntil Novemebr.

All part of Obama e-election plan. 

Thu, 07/05/2012 - 12:01 | 2589145 docj
docj's picture


< / DUG >

Thu, 07/05/2012 - 12:05 | 2589152 Downtoolong
Downtoolong's picture

Whether or not China will reply that buying US 10 year paper at 1.6% is also unfair remains to be seen.

Well,  if they don't  like buying Treasurys why not sell them. That's what I'm doing. Oh shit, there I go confessing my unpatriotic conduct again; and right after independence day too (hmm, this means something). It probably means I'm going to get served and sued by the WTO myself any day now.


Thu, 07/05/2012 - 12:59 | 2589377 Jam Akin
Jam Akin's picture

MC:  Tell him what he's won Johnny.  

Johnny:  You've won a one way trip to fabulous Camp FEMA.  Camp FEMA is much more than just a destination, its a whole new way of life.   Your stay will feature 3 hots, a cot, and an extensive Mao-inspired re-education curriculum. Retail value: at least $19.95

Thu, 07/05/2012 - 16:03 | 2590032 monad
monad's picture

19.95? IS THAT ALL?!! It cost me half my pay to send him there!

I want my money back!

Thu, 07/05/2012 - 16:45 | 2590137 TheGardener
TheGardener's picture

Travel to the former Germany and see at the concentration camp sites re-inacted exhibitions how leisurely things originally started there.

The better ones, further from the East, further from recorded official history.

Most participants of this government`s make work and be useful scheme did not quite survive, but those were hard times.

The cynic language stays the same or worse, beware of the spin.

Thu, 07/05/2012 - 12:07 | 2589164 Son of Loki
Son of Loki's picture

Unions must be pusing Barry with Shumer and Pelosi leading the way

Thu, 07/05/2012 - 12:13 | 2589182 shutdown
shutdown's picture



How about we declare a trade war with Singapore! Their import duty is 31% on cars. And the registration fee is 140% of the value. And the certificate of entitlement to purchase a car is $50,000. A low end Ford winds up costing about $120,000.

Instead of annoying China, which is a waste of time, let's pick on a small country (as usual) we can easily intimidate.  

Thu, 07/05/2012 - 16:04 | 2590033 TrainWreck1
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Do they have any oil? Then we need to send in the carrier groups before the Singapore WMD's are used against, um, whoever the hell their neighbor is... Indonesia or some thingamajig country. Then Singapore can have free elections, and the MB can take over. Hail Obama!



Thu, 07/05/2012 - 16:56 | 2590166 TheGardener
TheGardener's picture

Last time I went there , those taxes did rather encourage
them to drive around in decent V8 mercs for showing off and in plentitude as if they were to be had for 70 gran second hand just as here...Style is the division, island economy
or not

Thu, 07/05/2012 - 12:20 | 2589201 Falkor
Falkor's picture

This is too sickening even to comment.


"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.


WTF is that... so if MACs are popular in US, Chinese gotta eat MACs? Utter Nonsense coming from POTUS.

Thu, 07/05/2012 - 12:29 | 2589234 lovejoy
lovejoy's picture

Trade War on the way. Probably impacts China more than the USA. The notion that the US is dependant on China to buy the US's ten year debt is technically wrong. When China sells the US all the junk that we consume, China gets US dollars and the digital money sits in their account at the Federal Reserve. When the FED implements ZIRP, China does not earn much on their funds at the FED, so to generate a little more of a return, they buy 10 year Treasuries. The US is not dependent on China buying its debt.

Thu, 07/05/2012 - 14:07 | 2589617 laomei
laomei's picture

The US IS however entirely reliant on Chinese goods for multiple reasons.

First off, the US doesn't even bother buying the good quality stuff here, nope, just the cheapest possible to ensure the highest margins.

A widget that is FOB cost of $1.50 magically becomes $100 by the time it hits the US shelves.  What happens to that $98.50 in between? Everyone's gotta take a cut along the way.  Shift all that over to the US and one of two things will happen.

1) That $98.50 goes poof and vanishes to maintain the $100 price point, and along with it a whole shitload of jobs.

2) That $100 price point gets jacked up in a major way and the "middle class" suddenly realizes it can't actually afford to buy things.  Sure, there are some more manufacturing jobs maybe, but that's not gonna support the economy.  NIMBYs are not gonna allow the facilities required to make it happen either.

Does this hurt China? Sure, somewhat, but honestly speaking not a whole lot, it WILL however hurt you a whole hell of a lot when 80% of your population suddenly discovers it cannot afford shoes or other things it takes forgranted.

What will China do when it stops buying your notes? Welp, it can start by buying all your damned oil.  Free market after all.  China and the rest of the world can deal with $10 oil... the US panics and starts getting weird when $5 is within striking distance.

What is being ignored entirely here is that the US is infrastructurally dead.  It doesn't just pop right up overnight.  That takes serious time and effort.  Nor is any sane company going to be manufacturing in the US for high cost when literally every other country is still available.  So do feel free, go right ahead, attack China, you're not solving a single problem of yours.  More likely than not, you'll actually be making the problem worse. 

And of course, this won't work out anyways.  The US market is small and shrinking.  Hell, a sixth of you are on food stamps and can't even afford to feed yourselves.  Everyone is just buried in debt and what little is left is eaten up by pointless and/or overpriced services.  A handful of manufacturing jobs spitting out overpriced garbage isn't gonna fix or change any of that... sorry.

Thu, 07/05/2012 - 16:00 | 2590018 roadhazard
roadhazard's picture

I owe nothing and haven't for years. I can not believe the price retail wants for anything. And it was that way even before '08. I will not buy anything that I do not absolutely have to have and if I can get by without it I do. Fuck the world. I save a Lot of money with that attitude.

Fri, 07/06/2012 - 06:47 | 2591141 lovejoy
lovejoy's picture

I am not attacking China. Simply explaining the likely result of a trade war. The U.S. has problems and so does China. China will have problems until it can create sufficient domestic demand. Selling goods to the U.S. simply means that China accumulates a lot of dollars. What is China going to do with those dollars ... sell them and buy there own currency. No, they don't want a weak dollar as that would price them out of the market. The U.S. has its problems - fraud has become the mainstay of the free market. Companies will do anything to make a buck and that does not get anyone and especially society anywhere in the long run. You almost wonder what capitalism will be like in years because it is on its way to a total collapse.

Thu, 07/05/2012 - 15:02 | 2589799 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture
Obama Opens Car Front In Chinese Trade War

Couldn't they just have said "Obama Opens Car Hood...?" 

Is that racist?

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Thu, 07/19/2012 - 02:20 | 2630888 Vic Vinegar
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So is Leo back, only to pitch us used Japanese automobiles?  I guess pensions really are underfunded and there are no answers.  LOL

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