Tyre case tarnishes U.S. image

BEIJING, Sept. 13 (Xinhua) -- U.S. President Barack Obama shocked the world on the weekend by deciding to impose punitive tariffs on tyres imported from China.

The world was shocked because people had generally expected Obama to reject the tariff petition which bears clear trade protectionism color. Officials and experts from China, international organizations and even the United States have all warned that such an action would hurt not only China, but also the U.S. itself and even the world economy.

The decision was disappointing because it had been widely understood that it would have a fatal impact on the world trade environment. The global free trade progress, of which the United States used to be a leading promoter, will undoubtedly suffer a serious setback.

When the U.S. decision takes effect on Sept. 26, car and light truck tyres imported from China will suffer punitive tariffs of 35percent, 30 percent and 25 percent in the coming three years, respectively.

Experts analyzed that under the new tariffs, some 100,000 Chinese workers would lose their jobs and the country's tyre industry might suffer a loss of 1 billion U.S. dollars in export.

It would not save jobs in the United States either. On the contrary, some 100,000 tyre-related jobs in the United States could be affected, including such sectors as imports, distribution and retail. Further more, U.S. consumers would have to pay more to buy tyres at a time when their purses are much thinner as a result of the economic downturn.

Media reports say that Obama obeyed to the Steelworkers' union, the filer of the petition to raise tyre tariffs, because he desperately needed to win domestic support to walk out of the current difficult time in pushing forward new policies. Whether he will be able to reach that goal is uncertain, but the U.S. image as a free trade leader has undoubtedly been tarnished.

By giving green light to the petition, Obama is eating his own words as well. China's Minister of Commerce Chen Deming said in an interview with Xinhua that the U.S. government's decision failed to honor its commitment made on the G-20 financial summit.

The Associated Press (AP) reported Saturday that Obama has spoken out strongly against protectionism and other countries willview his decision on tyres as a test of that stance. This is not the first time that the United States uses trade restrictive measures as a weapon for political or other purposes, especially after the outbreak of the financial crisis. Over the past few years the United States has launched series of trade protectionist actions in names of anti-dumping, quality standards or safety factors, and China has been the top target of these actions.