American Tire Tariffs Against China: What We Can Learn from Poor Policy

Posted: 8 Jun 2016

See all articles by Charles A. Rarick

Charles A. Rarick

Purdue University Northwest, College of Business

Date Written: June 2, 2016

Abstract

Facing a significant decline in domestic tire manufacturing jobs, President Obama imposed tariffs on tires made in China for a three year period beginning in 2009. With domestic employment in the tire manufacturing industry in decline and Chinese tire imports rapidly rising, President Obama yielded to industry pressure. The tariffs significantly decreased the sale of Chinese made tires, however, tires made in other countries such as Mexico, Indonesia and Thailand rose as Chinese tires became more expensive. This paper explores the effectiveness of this trade policy and proposes there are lessons to be learned when pondering further such protectionist trade policies.

Keywords: Tariffs, trade theory, American trade policy, China

JEL Classification: F13

Suggested Citation

Rarick, Charles A., American Tire Tariffs Against China: What We Can Learn from Poor Policy (June 2, 2016). American Journal of Trade and Policy, Vol. 3, No. 1, 2016 (31-36). Available at SSRN: https://ssrn.com/abstract=2790620

Charles A. Rarick (Contact Author)

Purdue University Northwest, College of Business ( email )

Hammond, IN 46323
United States
219-989-8161 (Phone)

HOME PAGE: http://https://scholar.google.com/citations?user=ihoYZIkAAAAJ&hl=en

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