President Obama has triggered warnings of a trade war with the decision to impose tariffs on Chinese tyres. Obama has been somewhat caught in the middle on the issue of trade. On one hand, he has been trying to rid people of the idea that he is a protectionist; on the other, he has faced pressure from unions to enforce trade laws more firmly than President Bush.
In economic terms, the new tariffs are rather insignificant. However, the success of the United Steelworkers' claim could encourage more industries and unions to seek relief, again putting Obama in a similar no-win situation. Future tariffs will undoubtedly trigger more angry reactions from China, who has threatened to retaliate against American chickens and car parts and to take America before the World Trade Organization.
In these difficult economic times, it is likely that Obama will be forced to again take a stand on trade in the near future. If he again acts in a protectionist manner, headlines like the Global Times' "America has erred before the world" are sure to resurface.
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