Tuesday, February 2, 2010
US Response to Tire Market Failure
Here is a good article summarizing the reaction of the US to our decline in tire sales. It explains how we have begun to tax imported Chinese tires in order to slow down their sales as well as give our own tire market a chance to succeed.
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3 comments:
I think this may benefit the economy. This will make people turn to US tires and increase sales of US tire producers which would eventually lead to growth.
This article is similar to what Obama is doing with the glass-making companies in China as well, this can only benefit our economy like Mishaal stated. This is a step in the right direction.
I believe that placing tariffs on things such as tires that can be produced in the U.S. is a good idea. Four U.S. tire plants closed in 2006 and 2007 causing there to be 5,168 fewer workers in the tire industry. Hopefully this tariff will help keep jobs within the U.S. and give the U.S an advantage in the market. U.S. tire producers should be able to benefit greatly from this imposed tariff.
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