China- US trade war

The President Barack Obama approved raising the tariff  tax on imported tires from China, in order to slow the growth of United States imports of Chinese-made tires. In the past, it  was a small tariff of 4%. However, the American president  imposed an additional tariff of 35 % for the first year, 30 % for the second year and 25 % for the third year.

Unions blame the growth of Chinese tires imports for the loss of thousands of American jobs. More than 5,000 tire workers have lost jobs since 2004, Chinese tires overwhelmed the US market and hurt profits for American companies.

China accused the US of protectionism which is forbidden by the World Trade Organization. China announced it would investigate complaints that American of chicken products mainly chicken feet benefit from government subsidies or are being dumped in China, which means being sold in China at below market prices.

As a result of that the tariffs are expected to raise pricing of all kinds of tires because there will be fewer cheap competitors.

American Companies will be under less pressure to lower prices since their not a rude competition. These companies have also been cutting production and as a result of that there will be fewer tires for sale. 

China is not stealing US jobs or engaging in unfair trade practices to undercut US economic might and exports its way to global power. In fact, most of Chinese exports to the United States are produced by firms owned by foreign companies, many of them American. These firms have moved overseas in response to competitive pressures to lower production costs and thereby offer better prices to consumers and higher returns to shareholders.